Breach of Contract

ven during these unprecedented times, one of the fundamental freedoms we enjoy in the United States is the freedom to enter into agreements with other people and businesses for the exchange of money, property, ideas, employment, comforts and securities.   Each day, we enter into all kinds of agreements as we go about our lives in which an unspoken trust in one’s words, written or otherwise, being a bond that creates a harmonious order to each exchange.

The creation of a contract involves two or more parties agreeing to be bound to the terms of a written or oral agreement and sufficient consideration being given by both upon the meeting of the minds.  In a perfect world, each party gets the benefit of the bargain.   What happens when all doesn’t go as planned and one party fails to uphold their promise without reasonable or justifiable excuse?   There is nothing magical that automatically makes the non-breaching party whole again.  In fact, millions of contracts are breached every day where no one speaks up or complains.

A breach of contract is essentially a breach of trust  and the law provides a specific cause of action where there was, in fact, an agreement, a deviation from that agreement by a party and where some type of damages result from the failure to comply with the contract.   Breaches of contract may take many forms and, in some instances, it is not clear whether an actual breach occurred or whether non-performance was justified.

Determining if contractual terms are breached can be very obvious or can turn on legal nuances.  In some cases, especially in times of crisis, neither of the parties are “at fault” due to a natural disaster or an “act of god”.   In fact, unforeseen events provide opportunity for the renegotiation of contracts related to employment, mortgage loans, commercial leases, residential leases, supply lines, construction agreements and debt obligations.  Undoubtedly, hurricanes, fires, accidents and other events have created uncertainties in national and local markets that have shattered the status quo and have asked us to redefine terms of millions of contracts, to cancel others and question what is truly essential as businesses seek to survive in the “new normal”.

In each changing circumstance, it is imperative to think outside the proverbial box and use unorthodox thinking especially for small business survival.   Farrow Law has been pioneering a law practice focused on urgency and results in all of its practice areas.   “Tried and true” methods of filing a lawsuit for breach of contract, while still a powerful tool, can provide answers which are “too little, too late” for many small business owners who have had contracts breached, cancelled or terminated.    Now is the time for action for small businesses and individuals who are seeking real answers and solutions when the other side doesn’t live up to their end of the bargain.

It is possible that any agreement be modified or renegotiated, and it is also possible to hold a person or a company to the letter of the contract by alternative dispute resolutions which are geared towards results in months as opposed to years.   We live in the age of instant access to answers and the legal system must adapt to serve our clients efficiently.

There are a thousand reasons a party breaches a contract and those motives may provide for additional relief.   For example, in some instances, if a party knowingly misleads another during contract negotiations or they manipulate corporate books to justify a breach of contract, other claims may arise, such as fraud in the inducement and fraudulent misrepresentation. These causes of action may lead to punitive damages and provide an avenue for relief distinct from breach of contract.  For each reason, there are laws to protect a partner, shareholder or investor from being defrauded or by a breach of trust or by a breach of contract.

Each situation is unique and requires careful analysis and the application of different legal tools.   By the time you are looking for a lawyer to handle a business dispute or breach of contract, you are usually past trying to amicably work things out and there is substantial money or property missing.   In this case, we believe it is time to stand up for yourself and we are here to support you.   We are heavy-handed in our pre-suit reconnaissance and believe information is the key to gaining the upper hand in any business dispute or breach of contract.   Our unorthodox approach to investigations is directed at making a meaningful attempt to resolve the case before it even gets filed and becomes a matter of public record.   In many instances, the breaching party does not want to be exposed for their missteps and become willing to resolve matters when presented with evidence.