Breach of Contract: Frequently Asked Questions

Breach of Contract: Frequently Asked Questions

Posted By Salvador Phillips, PLLC || Aug 8, 2018

A breach of contract is essentially a legal term that is used in situations where one party does not honor the terms of a legal agreement. A breach can occur for any number of reasons, including unexpected delays, financial difficulties, or other unforeseen events that cause someone to breach a business contract. If you own a business or are considering entering into a business contract, you likely have questions regarding this issue. We have compiled a list of commonly asked questions to help shed some light.

Below is a list of some questions and answers regarding a breach of contract:

  • Will I always be liable if I breach a contract? In the event that a contract is found to be void, a breach of contract can be excused. Some of the grounds for which a contract can be found void include impossibility and impracticability. For there to be a valid contract there must be an offer to which another party will have to agree to. There must also be an exchange of valued goods or services.
  • What if the contract was not in writing? It is not uncommon for a contract to be made orally, though there are certain agreements that must be made in writing, according to the Statute of Frauds. Contracts that must be made in writing in order to be considered enforceable include: contracts that involve the sale or transfer of land, a promise to pay off someone’s debts, contracts that involve the sale of goods for more than $500, and contracts that go beyond the lifetime of the individual who is supposed to fulfill it.
  • What counts as a breach of contract? If something was meant to be delivered on Thursday night and arrived Friday morning instead, this would likely be considered an immaterial breach by the court since it likely would not have resulted in damages and would not warrant monetary compensation. If the contract explicitly stated that time was a critical factor and the product needed to arrive by Thursday night, it is possible that it could be considered a material breach. Some of the factors a judge would examine to decide if there was a breach of contract include: whether a contract existed, the contract’s terms, if the contract was ever modified, if the alleged breach occurred, if that breach was immaterial, and the extent of the damages caused by the breach.
  • What happens when a contract is breached? Breaches in contract can be frustrating and not only waste time, but money as well. In this case, you are likely going to have to file a lawsuit and, depending on the dollar amount in question, you might be able to file it in small claims court. Generally, anything breach of contract that involves a sum under $7,500 would be handled in small claims court. Given the complexities involved in such cases, it is crucial that you hire a business attorney to handle the intricacies involved, so you have a better chance of achieving a positive result.

Breach of Contract Attorney in Phoenix

If you have a breach of contract issue on your hands, you need an experienced business attorney to handle your case. At Salvador Phillips, PLLC in Phoenix, we can help you handle your breach of contract lawsuit every step of the way and will carefully review your contract to determine if a breach took place or not.

Get started on your case today and contact our law firm at (602) 842-6222 to schedule a free initial case evaluation with one of our breach of contract attorneys.

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