Breach of Contract
Contracts form the foundation of almost every business relationship your company will have. A contract is a legally binding agreement made between two parties who have certain obligations as acknowledged in it. It can be verbal or written. If one party fails to perform its obligations under the contract, a breach has occurred. In such an instance, the non-breaching party can take legal action against the breaching party. If you are involved in this type of case near the Fort Lauderdale area, the skilled commercial litigation lawyers at Stok Folk + Kon can help you understand your legal rights and options.How Contracts can be Breached
When a contract dispute occurs, the parties will typically look to the agreement to see if they can resolve it. In some cases, the language used in the contract is interpreted differently by each party and forms the crux of the dispute. This can happen if the language is highly complex or overly vague. The four most common types of contract breaches are:
- Minor breach: A minor breach is also sometimes called a partial breach. It is the failure to perform some—but not all—of the obligations outlined in a contract. In essence, it is when the contract is broken in part. A minor breach is less severe than a material breach.
- Material breach: A material breach is a substantial breach of contract that excuses the harmed party from further fulfilling its obligations under the contract. In essence, the breach is so significant that it nullifies the contract. The harmed party has the right to sue the breaching party for damages.
- Fundamental breach: This type of breach is also referred to as repudiatory breach, and it occurs when a party bound by a contract refuses to perform a contract or a significant part of it. The aggrieved party is then entitled to sue the breaching party for damages.
- Anticipatory breach: This type of breach occurs when one party demonstrates its intention to break a contract by stating ahead of time that it does not intend to fulfill its obligations under the agreement. In such an instance, the other party may take legal action immediately rather than waiting until the terms of the contract are actually broken.
When a breach of contract occurs, there are various types of monetary damages that the non-breaching party can seek. In some rare instances, when compensation cannot make up for the losses, the breaching party will be ordered to perform its duties as stated in the agreement.
Every state has its own time limits for filing certain lawsuits, known as the statute of limitations. Under Florida law, the appropriate time window is five years for a written contract and four years for an oral contract. If you are dealing with this type of issue, it is essential to consult a knowledgeable attorney who will be vigilant about the timeframe in which you need to take legal action. Failing to file a lawsuit within the statute of limitations can result in the court refusing to hear your case altogether.Dedicated Legal Representation in Fort Lauderdale Commercial Litigation
At Stok Folk + Kon, our experienced business attorneys are knowledgeable in resolving breaches of contract that arise in Fort Lauderdale and beyond. We will review the facts of your situation, inform you of your legal rights, and let you know how we can help. We understand the stress that can accompany a broken agreement, and we are committed to resolving your case in a timely manner. Our firm proudly represents clients in Hollywood, Fort Lauderdale, and throughout Florida. To learn more, call us at (954) 237-1777 or contact us online for an initial consultation.