Ideally, business contracts would go as planned, benefiting both parties. Unfortunately, delays happen, financial problems arise, and unexpected events can occur, affecting the agreements written in a contract. When one party fails to fulfill any of its contractual obligations, it is known as a “breach of contract.” Our Seattle business litigation attorneys explain everything a business owner needs to know about breach contract lawsuits.
If your contract has been breached, you need an experienced business attorney on your side. Contact our Seattle breach of contract lawyers today at (206) 565-0090 to case review!
What Is a Breach of Contract?
A breach of contract is the violation of an agreement due to one party’s failure to fulfill its promises. A contract can be breached in whole or in part. A breach of contract is usually categorized as either a “material breach” or an “immaterial breach.”
Can I Sue for Breach of Contract?
When a contract is breached, one or both parties may wish to have the contract enforced, or they might want to recover any financial harm caused by the breach of contract. You can file a claim against the party who breached the contract, or you can request a mediator review to come up with a solution. To file a claim, you must also demonstrate that you have a legally binding contract.
Under Washington law, a valid and binding contract involves the following elements:
- Competent, mutually assenting parties
- Legal subject matters
- A proper, unrevoked, and accepted offer
- Valuable and sufficient consideration as required by the law
Types of Breach of Contract
If your business agreement is broken, you should know whether your breach of contract was material or non-material. Below is the difference between both types of breach contracts:
- Material breaches are contracts that are broken in a way that defies the whole reason why the contract was established. The fundamental roots on which it was established are broken.
- Non-material breaches are breaches that violate terms of a contract but do not defy the point of the contract completely. An agreement can withstand a non-material breach.
If the contract is binding, the subsequent breach is only actionable under Washington law if it is a material breach. The court will analyze relevant factors in your case to determine whether a material breach exists. The court will also determine how the party that suffered damages may be deprived of the benefits they expected through the contract. They will then try to determine whether the injured party can be reasonably compensated for their loss, among other things.
Remedies for Breach of Contract
When an individual or party breaches a contract, the other party is entitled to relief under Washington law. The main remedies for a breach of contract include damages, specific performance, cancellation, and restitution. The most common solution for a breach of contract consists of payment of damages.
Specific performance is granted when the court orders “performance of duty” under the contract. A non-breaching party may cancel the contract and decide to sue for restitution so that the non-breaching party is put back in the position it was in before the breach. The cancellation would void the contract and relieves all parties of an obligation under the agreement.
Seattle Business Breach of Contract Attorneys
Whether you are claiming another party has breached your contract, or you are facing such claims yourself, our attorney at Northwest Business Law LLC is here to help you. Our team has extensive knowledge in contract law, material breach, and tort liability to protect your rights and advance in your best interest. We are here to help you from beginning to end.
Contact our Seattle business breach of contract lawyer today at (206) 565-0090 to schedule a consultation!