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Concerned With a Breach of Contract?

If you need information about how to deal with a breach of contract, it is highly advisable that you consult with an attorney who practices contract law. To have an attorney contact you to answer your questions about a broken contract, please fill out the form below.

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What is a Breach of Contract?

Basically, a breach of contract is a broken contract to which one of the parties of the contract has not met the terms that are stated in the document. Real estate contracts and rental contracts are two of the most subjected types of contracts that experience a broken contract.

A broken contract can lead the parties into the court systems because in some cases a breach of contract can be expensive to one party while the other party is seeking to be relieved of their contractual duties.

Sometimes rental contracts that are broken contracts represent only a small loss that can easily be addressed in small claims court. However, a broken contract in real estate contracts can cause enormous expense with claims that are appropriate to be heard in a higher court.

In most cases, both parties of a contract have to adhere to the terms that are stated in rental contracts or real estate contracts and failure to do so results in a breach of contract or a broken contract. However, both parties to a contract have rights that are defined by law. If the terms of a contract contradict those rights, those terms will not be upheld if the matter goes to court.

Before filing papers to take a breach of contract to court, it is a good idea to consult with a lawyer who practices contract law to make sure that your claim holds water. In order to determine whether or not a broken contract exists, the lawyer will need to review the contract as well as being informed of the circumstances that you are facing. He or she will be able to determine if the terms of the contract are legal as well as identifying clauses in the contract and regulations set forth by law that may support a claim of breach of contract.

A Breach of Contract in Real Estate Contracts

In real estate contracts is not uncommon for a breach of contract to occur by one party backing out of the sale or purchase before closing. Most real estates contracts require the purchaser to make a security deposit in order for the seller to hold the property until closing. If the purchaser fails to get financing, both parties are usually released from the contract and the security deposit is returned to the purchaser. If the seller fails to deliver a clear title to the buyer, a broken contract exists and the seller has to provide the buyers with a refund of the security deposit.

Many real estate contracts contain clauses that address the process to be taken to resolve disputes during the transaction and specify how to handle a breach of contract. These terms may include participating in arbitration or mediation in lieu of going to court or the terms may require a court decision to work out disputes. Refusing to participate in such activities required by real estate contracts can be considered a broken contract.

Often a breach of contract exists in real estate contracts if the contract states that certain things are to be included in the sale and they are not left at the property by the seller. This may include appliances, lighting fixtures, carpet, etc. If the seller removes these things from the property before the purchaser takes possession, a broken contract has occurred. The buyer may be able to back out of the contract and receive his or her security deposit in full, or the seller may be ordered to provide the amenities that were supposed to be provided with the sale or to pay the costs for the purchaser to replace them.

Sometimes, when engaging in real estate contracts, the purchaser requires an inspection of the property before the closing. If the contract says that if the inspection turns up deficiencies in the property that the purchaser has the option of backing out of the contract or requesting that the seller correct the deficiencies, it is possible for either party to end the contract.

There are some instances where the purchaser stands a chance of losing their security deposit due to breach of contract. If they simply make the decision not to buy after they signed real estate contracts, they usually are not entitled to receiving their security deposit back due to a broken contract.

The best way to determine whether or not the situation that you are facing concerning real estate contracts constitutes a breach of contract on your part or by the other party is to consult with an attorney who specialized in contract law or real estate law.

In order to protect your interests in case of a breach of contract in a real estate contract, it is best to get an attorney involved early on, before you actually sign real estate contracts. Then, if it becomes a broken contract, if you want to breach the contract or if you experience a broken contract by the acts or failure to act of the other party your interests will be protected in the greatest measure that law allows.

It is unwise to sign a contract of any kind without the advice of attorney who specializes in contract law or real estate law. The terms may look great to you; however, an experienced attorney is more familiar with the "what ifs" that exist in regard to real estate contracts. Usually, they will write a clause that assures you an out if things don't go your way as well as protections if the other party changes their mind about going through with the performance of the contract.

A Breach of Contract in Rental Contracts or Leases

A breach of contract often happens with dealing with rental contracts or leases. Basically, in rental contracts and leases the tenant is required to pay the rent on time, to take care of the property and to return it to the landlord in a condition that is as good as it was in when the tenant took possession. Generally, the tenant also has to report needed repairs to the landlord and they have to comply with all of the terms in the rental contract or lease including adhering to the rules set out by the landlord in the agreement. Failure to adhere to the terms of lease or the basic responsibilities of the tenant can be considered a broken contract which can lead to eviction for the tenant.

In rental contracts or leases, the landlord can also present a breach of contract. In this instance, a broken contract occurs when the landlord fails to live up his or her responsibilities that are defined in the law or specifically addressed in rental agreements or leases. Generally, the landlord duties include maintaining the property in a habitable condition, providing access to running water and utilities, and maintaining common areas unless it is specifically stated in rental agreements or leases that maintaining the yard and so forth is the tenant's responsibility. Rental contracts may specify that the landlord is to provide appliances in which they are required to maintain them. The failure of the landlord to uphold duties can be considered a breach of contract which can result in the tenant being relieved from their contractual commitment in some cases.

In regard to dealing with a broken contract concerning landlord duties to repair, some states allow tenants to make the repairs themselves or to hire someone to do the repairs and then to deduct the costs from their rent payment that is agreed upon in rental contracts or leases without the reduced payment being a breach of contract.

Other Breach of Contract Situations

In addition to rental contracts and real estate contracts, a breach of contract can occur in any contractual relationship. For instance, contracts between a client and a service provider commonly experience a broken contract. Basically the term "breach of contract" is used to describe a broken contract in which the agreed to terms are not honored by one of the parties. A broken contract can represent the non-performance by one party or the interference with the performance of the other party.

In broken contracts there are several levels of breach of contract situations. There are minor breach of contract circumstances, material breach of contract status, fundamental breach of contract occurrences, and anticipatory breach of contract conditions. Although each of these instances of breach of contract constitutes a broken contract, the remedies and limits of damages is considered depending on the type of breach of contract.

In a broken contract case, the damages that are awarded to the prevailing party are usually monetary. The damages are usually calculated to restore the economic condition of the injured party using the expectation measure. In some cases, it is not possible to use this type of measure to decide the damages of a breach of contract so a reliance measure is used instead.

In most cases of a broken contract, restitution charges are usually not permitted. Although the broken contract may specify liquated damages be awarded in case of breach of contract, that type of damages is not always upheld, especially if it constitutes restitution for one party. Also, in regard to a broken contract, punitive damages are not usually awarded unless they are granted because of another cause of action that affects the lawsuit. In cases of breach of contract where monetary damages cannot be determined an equity decree may be awarded resulting in injunction or a specific performance.

Laws that deal with a breach of contract can be easily misinterpreted by laymen. Just because a breach of contract exists, that does not mean that the non-breaching party is relieved of duties associated with the broken contract. In many cases, a minor breach of contract is not means for terminating the contract altogether. There may be some damages awarded for the prevailing party; however, breach of contract instances do not necessarily mean that either party is not legally bound by the non-breached terms of a broken contract.