Showing posts with label Contract. Show all posts
Showing posts with label Contract. Show all posts

Thursday, September 15, 2011

Court Proceedings For Broken Contract Cases

A contractual agreement is a legal one. This means that the parties to the contract have agreement to be bound to each other by a promise which if breached would attract legal consequences. Therefore the defaulting party, i.e. the party that does not go along with the promise can be sued in a court of law. Depending where you are residing in the world, there is the most likely situation that your country will have specific laws relating to breach of contract and a legal process of how you can seek remedy in the court of your country. In some countries a breach can be settled by a mediation process whereby both parties to the contract in the event of a dispute will agree to meet a learned person or a village elder and ask the person to be a mediator. The role of the mediator is to hear both sides of the story and decide who is right and who is wrong and what compensation should be paid.

In many developed countries, there are well established legal systems that will provide the platform to bring a legal action. So for a broken contract the first thing you got to ask yourself is whether you really want to sue the breaching party or not. Sometimes it might not be worth the effort to sue as the amount or issue concern is so trivial that it would be a waste of the court's time. Think about it - would you want to sue for being served your meal late in a restaurant? Or that the free gift that was promised when you made a sale turns out to be defective? The thing here is that you are within your right to sue, but life is too short to waste time and effort in these kinds of situation. Unless of course you really got nothing else to do in your life.

However if the contract that you are in consist of a substantial value or that you stand to lose lots of money then you should consider bring this case to court. This is where you might need to engage the services of a lawyer. Some lawyers might charge you a flat rate to handle your case. Others might want a percentage of the sum given to you if you win the case. Yet there are other lawyers who might handle a case on a pro bono basis. This means that they do it for you absolutely free of any charges. Of course, you might ask why would any lawyer be out of his mind to do such a thing? There are many reasons both personal to the lawyer and others. So if do have such a lawyer - ask him or her?

Otherwise, the lawyer will not assist you in bringing the case to court. But usually this is the last resort. What the lawyer will try to do is to see whether it would be possible to settle the issue out of court. This might involve some arm-twisting and tough negotiation. It is a likely chance that the other party might not have intended you to go this far and might quickly back out and settle the matter as amicably as possible. Then again the other party might also feel that he or she is in the right and may decide to take you on in the court of law. If this happens your lawyer might issue a writ of summon for a court proceeding. A date will be fixed for you and the other party to attend court and state your claim. There will be a presiding judge who will hear the case. Even at this stage it is not too late to change your mind and resolve the issue out of court. If this is not possible at all then a date will set whereby the lawyers for both side will built up the case against each other. This is where your lawyer will try to adduce evidences and information that will help your case. At this stage you have to work closely with your lawyer to give him/her all the information that is required to strengthen your case. Eventually the case goes to court at which stage the person suing will be referred to as the plaintiff and the person being sued being referred as the defendant.

In many countries there are different levels of courts. Some hearing cases amounting to a few thousand dollars to others which are higher up the ladder hearing cases that might go into millions of dollars. So depending the amount of compensation that you intend to claim the case will go to the appropriate court which your lawyer will recommend. Note that the higher up the court, the more expensive it will for you and if you lose then there is a lot of money you need to pay your lawyer and the winning party.

So you really need to consider all the possible scenarios before you embark on getting justice for your broken contract. Personally, I would prefer as far as possible to try to resolve the dispute without the need to go to court or engaging a lawyer.

Dr Daniel Theyagu is a corporate trainer and seminar leader who has designed and conducted competency-based training for more than 150 organizations. He is based in Singapore and can be reached at dtheyagu@singnet.com.sg. Website: http://www.thinklaterally.com/


http://EzineArticles.com/6499525

Friday, September 2, 2011

Breach of Contract: Legal Remedies That Can Be Pursued

Business contracts are a key element for the business world. They make sure that individuals and corporations keep their promises and fulfill their obligations. In essence, contracts are an idea backed by confidence and that confidence is supported by the legal system. It, however, is important to remember that no matter whether a contract is written or oral, it can be legally enforced.

When individuals or businesses fail to perform any particular term of a contract without a legitimate excuse, it is called a breach of contract. There are many ways that someone can breach a contract. It can include failure to complete a job, starting a job too late, failure to deliver goods as promised, not paying on time, not paying in full, or any move on their part which shows that they will not complete their work as promised (termed an anticipatory breach).

A breach of contract can occur one time or it can be a series of continued breaches; should this occur, the injured party can file a civil lawsuit. The remedies for contractual breaches are not designed to punish the breaching party, however, they are meant to place the injured party into the same position they would be in if it weren't for the breach.

When a contract is broken, the non-breaching party is relieved of his obligations under the contract, because of the other party's breach. When this happens, the courts very well may award damages as a result of the breach. In cases where monetary damages are inadequate to compensate the injured party, a court may award "specific performance," which forces the breaching party to fulfill their end of the agreement (contract).

As discussed above, there are two general categories of relief for breach of contract: damages and performance. Damages refer to monetary compensation, whereas performance involves forcing the breaching party to do what they originally promised to do in the contract. A business litigation attorney who specializes in contract law can help you determine which method is best to settle your particular contract dispute.

Before you file a breach of contract lawsuit, you should learn more about the different types of remedies available to you. Some people simply desire monetary compensation in order to make up for the grief the other side caused them whereas others want them to carry out their side of the agreement.

Monetary damages can include compensatory damages (compensation for your losses), consequential and incidental damages (foreseeable damages), attorney fees (can only be recovered if included in the contract), liquidated damages (must be specified in the contract if there is a fraud), and punitive damages.

Of course, the relative laws in force and the particular conduct of the breaching party will determine which kind of damages are awarded and how much. The more unconscionable the conduct, coupled with intentional behavior, the greater the chances you will be awarded larger punitive damages on behalf of the breach. In cases where the breach arose out of gross negligent behavior, compensatory and consequential damages are more likely to be received.

When money cannot make up the damage, sometimes the other side will be ordered to perform their duties. This remedy is more common with real estate transactions, since the courts prefer not to get involved with monitoring because it takes up too much time and expense.

Other remedies include rescission where the contract is canceled and both parties are excused from further performance and any deposits are returned. Another option is reformation where the terms of the contract are altered in order to accommodate what both parties originally intended.

Before you file a lawsuit, you should discuss your case with a business litigation lawyer who can review the contract for you. There may be limitations or notice requirements contained within your contract that may have waived your ability to pursue contractual remedies. An attorney will also give you a clear understanding of how much full litigation would cost. There may be alternative dispute resolutions available to you that can save money and time in the long run.

The Law Offices of Reimer & Rosenthal is a business law firm serving clients throughout the state of Florida. Their firm is recognized for their outstanding business, construction and commercial tenant litigation. They have also received outstanding recognition including an AV rating for premier professional and ethical standards by Martindale-Hubbell®. Furthermore, Mr. Rosenthal was recognized in the Miami Herald as one of South Florida's Top Lawyers for 2011. If you choose to use their firm, you can be rest assured that they will be handling your case with the utmost professionalism, and they will be using their unsurpassed knowledge relating to business litigation. To learn more about how they can help you in your legal matter, contact a Florida business litigation attorney from their firm at (877) 378-5953 or visit the firm's website at http://www.reimer-rosenthal.com/.


http://EzineArticles.com/6478922