Most people sign business contracts with excitement and anticipation, but unfortunately, some business deals turn sour when goals and responsibilities are not laid out clearly, disagreements arise, or one party fails to uphold its obligations. When this happens, legal battles are common. If you’re facing a contractual dispute in Arizona and thinking about legal action, or if you are being sued by a business partner, you need advice from an experienced Arizona business attorney who can help you understand what to expect, the requirements and challenges of a business lawsuit, and what evidence may be needed to win the battle.
Business contracts are generally put into writing and signed, although they can be oral agreements or even implied contracts through repeated actions or other circumstances. However, in order to be valid, a contract must have five specific elements:
In other words, one party must have a need, which they ask a second party to fulfill. If the second party agrees, they must consider their mutual obligations and any finances that may be involved. Both parties must be of legal age, of sound mind, and able to understand when they finalize their agreement.
Your Arizona intellectual property lawyer will always recommend a written contract. Not only are they easier to prove and discuss in court, but each party’s obligations, responsibilities, and benefits are clearly recorded without depending on someone’s memory or habits.
Most contract disputes are a breach of contract, which simply means that one party has failed to fulfill their obligations as detailed by their contract. This can include failure to deliver a product or service, failure to pay, failure to complete the service, violating real estate lease terms, and many other circumstances. In any of these situations, the party who upheld the contract may choose to sue the party whom they believe has violated the terms of the contract in order to relieve themselves of the contractual obligation, retain control of the business, or recoup financial or other losses. When the case goes to court, a significant amount of evidence will be required in order to win a court case. Don’t try to go to court alone; work with an experienced Chandler business lawyer who can provide representation and guidance throughout the process.
There are four types of evidence that can be used in court to prove your case:
Testimonial: Witnesses who speak on behalf of one of the parties regarding the circumstances of the contract or the alleged breach.
Documentary: Documents, such as the contract itself, invoices, or bank statements, that support the claims in the case.
Demonstrative: Physical evidence that supports the claim, such as a video recording or photographs.
Real: The contract itself and other physical items that can be used to prove the claims.
Specific types of evidence that may be used in court include:
When documents, including the contract, are submitted to the court, your Gilbert business attorney will need to provide proof of their authenticity and demonstrate a chain of custody of the document to ensure its validity.
Any evidence that is submitted to the court is subject to the Federal Rules of Evidence (if in federal court) or the Arizona Rules of Evidence (if in Arizona state court). Generally, evidence must meet three specific criteria:
Relevant: Related to the issue at hand
Reliable: From a source of appropriate character, relationship to the situation, or knowledge
Not prejudiced: Not designed to destroy the credibility of the evidence based on another unrelated issue
Some types of evidence are not admissible in court and may not be used even if they could otherwise be useful to the case. This includes:
The parol rule of evidence is a specific rule that applies only to written contracts when there is no doubt that both parties believed the document to be their final agreement. It prevents parties to the contract from submitting extrinsic evidence. In order words, the evidence that is presented must be based on what is written in the original contract. Oral agreements, other written agreements or promises besides the original contract, and discussions or communication prior to the finalized contract are called “extrinsic” or “outside” or “parol” evidence.
There are some exceptions to the parol evidence rule. For example, if a term or statement in the contract is ambiguous or missing, outside evidence can be used to clarify the terms. One party in the lawsuit may provide evidence of the existence of an integrated collateral agreement that cannot contradict the original contract. Parol evidence can also be used to demonstrate that one party was forced or coerced into the agreement.
If you’ve been a victim of a breach of contract in Arizona, contact the experienced business attorneys at Denton Peterson Dunn. We have the knowledge, skills, and experience you need to develop a strategy for successful litigation and recovery of your assets. Don’t try to face breach of contract litigation by yourself when you can obtain the representation and advice of a trusted Arizona business lawyer. Call our office today to schedule your confidential consultation and to understand your options.
Brad Denton – Denton Peterson Dunn
1930 N Arboleda #200
Mesa, AZ 85213
Office: 480-660-3249
Email: brad@dentonpeterson.com
Website: https://arizonabusinesslawyeraz.com
7272 E Indian School Rd #540-132
Scottsdale, AZ 85251
Phone: 480-690-3283
Email: service@dentonpeterson.com
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