When you make a deal with someone and hold up your end of the agreement, it’s only fair to expect the other person to do the same. But sometimes people ghost on payments, miss deadlines, and refuse to deliver. When someone breaks a contract that has serious consequences for your business or personal finances, you have legal options.
- Understand what counts as a breach of contract
You can sue for breach of contract, provided your situation meets the legal requirements. There are different types of breaches:
- Material breach. This affects the heart of the contract, like failing to deliver a product or service.
- Minor breach. The agreement isn’t completely destroyed, but you might still be entitled to damages.
In addition to a break in the agreement, it’s important to review the contract terms to see if there are termination clauses, notice requirements, or dispute resolution procedures. These clauses dictate what your next steps are, and in some cases, may require dispute resolution outside of a courtroom.
Another condition that must be met is that certain events might need to occur before a party’s duty goes into effect. If those events didn’t happen, the breach may not be enforceable.
Since contract law is complex, don’t pursue justice alone. For the best possible outcome, consult an experienced civil litigation attorney who knows the law inside and out.
- Gather evidence fast
Evidence can disappear if you wait too long, so start collecting it now. Get a hard copy of the final signed agreement, not just a draft or summary. Whether it was signed with ink or digitally, it holds equal weight.
Save and print every communication, including emails, texts, voicemails, and invoices. These can help prove what was promised, when it was due, and what was delivered (or not).
Next, record the impact of the broken agreement. Did you lose money? Miss deadlines? Lose a client? Document everything. Damages are harder to win without receipts, logs, and financial records.
- Attempt to solve it informally
After you’ve gathered all the evidence possible, reach out to the other party and try to solve the issue directly. Lawsuits are time-consuming and costly, so if you can resolve the dispute without involving the courts, it’s worth it.
Send the other party a demand letter outlining the breach, damages you incurred, and what you want. Give the other party a chance to fix the situation before taking further action. If the dispute stems from a misunderstanding or unforeseen issues, having an open conversation might lead to a fast resolution.
If your informal attempts at resolution fail, documenting your good faith efforts can help you if you pursue the matter legally.
- Consider mediation or arbitration
Even if it’s not required by your contract terms, consider mediation or arbitration to solve your dispute. Mediation is where a neutral third-party comes in to help negotiate a resolution. It’s not legally binding, but it can lead to a constructive settlement. Arbitration is a more formal process and is legally binding. It’s basically a court process outside of the courtroom.
If arbitration is required per your contract, you’ll need to follow that directive. Courts typically uphold these clauses and failure to comply can get your case dismissed or not heard at all.
- Know what damages you can claim
To win compensation, you need to prove actual damages/losses related to what you would have received if the contract was honored. This can include lost wages and other income, costs incurred, and replacement services. You also might be eligible for consequential damages like lost future profits and reputational harm.
Unlike other types of lawsuits, you won’t get punitive or emotional damages over breach of contract. A contract attorney is the person best qualified to assess your potential for recovering damages.
- Hire a contract attorney
If you’re ready to escalate the situation, you need a lawyer. But not every lawyer will be able to take a breach of contract case. You need a lawyer with extensive experience in civil litigation and contract law. An attorney will tell you if you’re better off settling, sending a cease-and-desist letter, filing in small claims, or pursuing a case in civil court.
If you have a good case, they may take your case on a contingency, so you won’t pay until or unless you win. However, every attorney is different, so ask about fees during your consultation.
Enforce the deal
Contracts only work when both sides know they’ll be held accountable. If someone broke a contractual agreement, don’t assume you just have to eat the losses. You have legal rights. Don’t take the hit. Push back legally.
