What Are the Breach of Contract Elements? Find Out With DoNotPay
It is common to find yourself in a breach-of-contract situation sooner or later since they are pretty frequent in the business world. You should learn how to handle unreliable clients, partners, and associates because disregarding the contractual terms can have disastrous effects on joint business endeavors.
If you wish to benefit from legal remedies for contract violation, you must demonstrate and prove particular breach of contract elements. Understanding these elements is crucial for creating a demand letter and filing an actual breach-of-contract lawsuit.
You should study them carefully because actions that seem unfair to you may not be valid reasons to demand compensation or sue the violating party in the eyes of the law.
If you wish to successfully win the case, you must prove the following elements:
- Contract validity
- Your performance
- Defendant's failure to fulfill their end of the deal
- Damages incurred as a result of the defendant’s actions
In case you must prove the agreement exists, it is much better to have a written contract. Probing the existence of the oral deal is still possible but more difficult to achieve. The court deems the contract valid if it contains:
- An offer—One of the parties needs to make an offer to initiate the cooperation
- An acceptance of the offer—The other party should accept or refuse the offer. They also have the option of making a counteroffer, which makes the original offer invalid
- A consideration in exchange for accepting the offer—It refers to the benefit both parties will enjoy and is usually financial
You must be able to prove that you fulfilled your contractual obligations by providing any evidence you have. If you haven’t fulfilled your part of the deal, you must prove that it is the result of the defendant’s failure to complete theirs.
Should that be the case, you may be excused from any further responsibilities to the breaching party.
The plaintiff should provide sufficient evidence that the defendant disregarded one or more terms of the agreement. The breach must be material (the defendant failed to honor an essential term of the contract) for you to file a lawsuit against them. Material breaches entail significant financial losses and are considered severe violations.
Even if you suffered material losses, you must prove that they result from the defendant's actions or their failure to act. Agreements usually specify penalties, but should that not be the case, the court will look for the following:
- Specific performance of the contract
- Reimbursement for expenses incurred by you
- Financial assets lost due to the breach of contract
- Future payment that will be lost due to the breach
- Compensation for time lost because of the violation
If you don’t know how to create a demand letter yourself, do not risk composing an invalid document. You should also avoid using free online templates because they are not trustworthy or suitable for every case.
Turn to DoNotPay to draft the legal document quickly and without trouble. These are the only steps you should take:
- Sign up for DoNotPay
- Select the Client Breach of Contract product
- Answer a few questions about the client and your mutual agreement
- Include a payment deadline for the client
- Attach photos as evidence if you have any
You can also count on DoNotPay to get information about various business-related issues, including the affirmative defenses to breach of contract. Check out the state-specific rules for breach of contract in the table below:
|South Carolina||North Carolina||Florida|
In case the defendant doesn’t respond to the demand letter you created, you should move on to the next step—filing a lawsuit. Our app, honored with the Louis M. Brown Award for Legal Access in 2020, will help you take your client to the small claims court.
You don’t have to hire a lawyer and pay a small fortune for their services as we can assist in:
- Collecting the required paperwork
- Filling out the court forms
- Creating a script with argumentation to strengthen your case in court
- Filing the complaint in your stead
Once your lawsuit goes well, you are entitled to a breach-of-contract remedy. Depending on your situation and contract terms, your options include:
- Compensatory damages
- Liquidated damages
- Specific performance
- Nominal damages
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