Consequences Of a Breach Of Contract For Arizona Businesses

How To Confront a Breach Of Contract With a Professional Corporate Lawyer

Running a business means frequently entering into a number of contracts. You may have contracts with your employees, contracts with vendors who provide the goods you need, contracts with service professionals, and contracts with business partners. In most cases, you won’t encounter any problems. The person you hire to fix your electric system will do so, and you will pay them. The company you hire to provide your raw materials will provide them on time, and with the quality expected.

However, you may occasionally encounter problems where the other party doesn’t come through as promised, and that may result in a breach of contract. In such cases, you need a good business attorney on your side to protect your interests.

What Is Breach Of Contract?

A contract outlines certain expectations between two parties. The contract says what each party will do and when they will do it. For example, a purchase contract could say that one party will deliver a certain amount of goods for a certain amount of money by a certain date, and that the other party will pay by a specific date.

Some contracts can be more complex, such as employment contracts. It is important to always have a business attorney draft these contracts for you or to review any contracts that you are asked to sign. Your Phoenix attorney will ensure that the contract is clear, that it protects your interests, and that it minimizes your risk of liability.

Types Of Contract Breaches

Breach of contract can be sorted into a few types of categories:

Material & Immaterial Breaches

Immaterial breaches of contract are considered minor violations. They don’t involve major losses for the other party. For example, if a vendor shows up late to provide a service, that could be considered a breach of contract (assuming the time or date was included in the contract). However, if it was just an inconvenience and didn’t result in the loss of sales or other losses, it was likely an immaterial breach.

Material breaches of contract result in major consequences. A material breach could be a farmer providing tainted meat to a restaurant or a service professional taking payment and then failing to show up to do the work.

Intentional & Unintentional Breach Of Contract

Sometimes, one party doesn’t intend to breach a contract but does anyway. Sometimes, it is because of negligence, and sometimes, it is because of circumstances beyond the party’s control. It is important that you work closely with a Gilbert attorney to determine whether you are dealing with an intentional or unintentional breach and what you can do about it. In some cases, you may need to provide evidence that a breach was intentional. In others, intent won’t matter to the legal outcome.

Anticipatory Breach

You may have reason to know that a contract has been breached before it occurs. This can happen when there has been some unexpected event, like a fire at a warehouse facility or a natural disaster. In a case like that, you would know that the person is not going to be able to meet their obligations, and you would be able to work with a Phoenix business lawyer about pursuing damages. A more common type of anticipatory breach is when one party to a contract expressed the intent not to fulfill a contractual obligation. In a case like that, the other party would be able to sue for breach of contract even if it has not yet occurred–based on the other party’s statement constituting an “anticipatory breach” of the contract.

Remedies For Breach Of Contract

The consequences for breach of contract are usually monetary. The wronged party can sue the party that did not fulfill their duties under the contract for damages. That could mean payment for monetary losses, such as damage done to the property, sales that were lost, and so on. You can also sue someone for the money it cost you to hire an attorney to seek remedy for the breach of contract. In Arizona, there is a statute, A.R.S. section 12-341.01, that allows for recoupment of attorneys’ fees in most contested contract actions.

Damages can also be punitive. That means that the court can order the guilty party to pay money for the suffering you experienced, not just the financial losses you suffered.

Consult with an experienced Chandler business attorney to find out what kind of damages you could expect from your case. Working with a good business lawyer will increase your chances of successfully litigating a breach of contract suit and getting the compensation you deserve.

Call a Qualified Business Attorney In Phoenix, AZ

The law firm of Denton Peterson Dunn has some of the top business attorneys in Phoenix, and they are ready to help you get the remedy you need for a breach of contract. Our attorneys handle all types of business litigation, including all types of breach of contract. They can also help you draw up the right contracts in the first place to help protect your rights later if there is a breach. Contact us in Phoenix today to schedule a consultation and learn more about your legal options.

Brad Denton – Denton Peterson Dunn