All You Need To Know About Breach of Contract in Arizona

Breach of Contract All You Need To Know About Breach of Contract in Arizona

Breach of Contract in Arizona—Simplified by DoNotPay

Every contract in the Copper State must contain an offer, an acceptance, and consideration, but what happens when there is a breach of contract in Arizona? This article will explain what a breach of contract entails, which legal remedies you can seek, and how to collect damages.

DoNotPay will also help you draw up a breach of contract demand letter if you want to settle the matter out of court.

What Is a Breach of Contract in Arizona?

A breach of contract occurs when a party fails to perform their end of the contract terms. There are three possible breaches of contract in Arizona—find a brief overview of the types in the table below:


Type of Breach of Contract Description
Material A material or total breach of contract happens when one of the parties does not fulfill the main purpose of the contract. This type of breach strikes at the root of the contract and makes it irreparably broken
Anticipatory An anticipatory breach occurs when a party indicates unconditionally that they will not or cannot fulfill their end of the agreement. The injured party can claim anticipatory breach as soon as this happens
Partial Partial breach of contract means that a promisor will not fulfill a part of the deal

Arizona Breach of Contract—Elements

The injured party needs to prove that the breach of contract occurred. They can do so by demonstrating the following elements of the breach:

  • Existence of the contract—The non-breaching party has to prove that there was a contract that was entered into by parties who were legally allowed to do so
  • Non-breaching party’s effort to fulfill their side of the contract—The promisee made a reasonable effort to perform their side of the agreement
  • Promisor’s failure to fulfill obligations—The breaching party failed to perform their obligations as outlined by the contract
  • Injured party’s losses—The non-breaching party suffered losses due to the breach

What Remedies Can a Non-Breaching Party Seek?

Once a promisor breaches a contract, the injured party has the right to seek legal remedies under the law, such as:

  1. Damages
  2. Specific performance
  3. Cancellation

Damages

Damages are typically awarded to the injured party for the losses they suffered due to the breach. There are a few types of damages in Arizona:

  • Compensatory damages—The purpose of compensatory damages is to put the injured party in a position they would have been in had the breach not happened
  • Punitive damages—The purpose of punitive damages is to punish the defendant, but they are not typically recoverable because the plaintiff needs to prove that the defendant had malicious intent
  • Liquidated damages—Liquidated damages are a type of compensation for a breach, but they are recoverable if the contract had a clause that covered them

Specific Performance

Specific performance is a remedy that the court chooses if awarding damages alone is not sufficient. It occurs when the court orders the defendant to fulfill all the terms of the contract.

Cancellation of the Contract

Cancellation or rescission is an equitable remedy that makes the contract void, puts the injured party in a position they were in before the contract was breached, and relieves all parties of the agreement.

Arizona Breach of Contract—Statute of Limitations

If your client breached the contract you had, you should know how much time you have to file a lawsuit. The statute of limitations in Arizona is listed in the table below:

How Long? What Type of Contract?
One year
  • Breach of employment contract
  • Wrongful termination
Two years
  • Personal injury
  • Conversion of property
Three years Debt from oral contract
Four years Specific performance of contract to convey realty
Six years Written contracts for debt

What To Do When an AZ Breach of Contract Occurs

Before proceeding to litigation, you should try seeking compensation by sending a demand letter, especially because court appearances can be costly. A demand letter should contain:

  • A formal request for the breaching party to honor the deal
  • Your intention to sue if they decide to ignore your demand letter

If you don’t know how to create a demand letter, you can consider some of the following options:

  1. Rely on demand letter templates—This option is not ideal since online demand letter templates are generic and will not contain all the specifics of your case—they are more of a guideline, so if you aren’t familiar with legal terminology, you should find a different option
  2. Hire an attorney—Relying on a lawyer to create your demand letter might seem like the safest option, but it is costly
  3. Subscribe to DoNotPay—DoNotPay is the safest, quickest, and most money-saving option

If you do decide to litigate, you should know that the other party might use affirmative defenses to breach of contract. This is typically an excuse as to why the defendant did not fulfill the terms of the contract.

Use DoNotPay To Draw Up a Demand Letter Efficiently

If you need a cost-effective and straightforward way to get your demand letter, DoNotPay is the right choice. Our app knows all the legal requirements for creating a demand letter. After you complete a short and simple questionnaire, we’ll have the information we need to draw up a demand letter that complies with Arizona state law and is tailored to your specific case.

To use our demand letter product, follow the steps below:

  1. Open DoNotPay and find the Client Breach of Contract feature
  2. Provide us with the necessary information—such as:
    1. Details about your client
    2. Date when the contract was entered into
    3. Amount that you’re owed
    4. Payment due date and the last time you sent the payment request
  3. Indicate the final date by which the client has to pay you
  4. Upload any photo proof (if applicable)

DoNotPay will generate your letter automatically, and we’ll even send it to your client if you instruct us to.

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DoNotPay Feature Our App Will
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Navigating the business world can be overwhelming. If your paperwork is piling up and disputes keep emerging, start using our app and declutter your workday from numerous chores.

The world’s first robot lawyer can help you deal with the following:

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