Contracts are an essential tool through which individuals and businesses can form reliable and enforceable agreements. Although contracts typically provide clear outlines of the rights and obligations of all parties, disputes may still arise. When a party fails to fulfill promises made pursuant to the contract, litigation often results.

The Alderman Law Firm can help. We represent commercial and consumer clients at all stages of contract disputes to ensure that their contractual rights are enforced.

Do I Have A Contract?

A legally binding contract has three parts: (1) offer, (2) acceptance, and (3) consideration. Offer and acceptance exist when the parties mutually express assent, and consideration exists if the parties manifest an intent to be bound to the contract.

For example, if Vincent offers to pay Patrick $30 in return for Patrick giving Vincent a particular comic book, Vincent has made an offer. If Patrick agrees to Vincent’s offer, then the offer has been accepted. Consideration simply consists of what the parties agreed to exchange under the terms of the contract. You might think of consideration as motivation to enter a contract. Patrick’s motivation was $30, while Vincent’s was the comic book. A contract cannot be formed without consideration going in both directions. Then, it would just be a promise, which is generally unenforceable.

If your oral or written agreement carries these three characteristics, you may have entered into a valid contract.

Has There Been a Breach of Contract?

A breach of contract occurs when a party does not perform as promised under the terms of a valid contract. Breaches can occur when one party either fails to act as promised, or prevents another party from fulfilling their end of the bargain.

The Other Party Breached our Contract, What Can I do?

If you have entered into a valid contract and the other party is in breach of the contract, you have the right to enforce that contract or seek damages in a court of law. If you are able to prove that the other party breached a valid contract, you will typically be awarded either of two remedies:

  • Specific Performance: The court orders the breaching party to perform his obligation under the contract, such as convey a property in a real estate transaction; or
  • Monetary Damages: The court orders the breaching party to pay any damages that resulted from the breach, such as the cost to complete a service that was never performed.

Essentially, through either of these remedies, the court attempts to put you back in as good of a position as you were in before the breach occurred.

How Can The Alderman Law Firm Help Me?

There are often three stages involved in dealing with a breach of contract, (1) notice of breach, (2) litigation, (3) collection.

The first step toward resolving a breach of contract is to notify the breaching party of their breach. Often, this notification occurs through a demand letter. A demand letter is a letter drafted by an attorney that explains what breach you believe occurred, and what steps the breaching party should take to cure the breach or compensate for the resulting damages.

By hiring an attorney to draft your demand letter, you demonstrate to the other party that you are serious about enforcing your rights under the contract. You are implying (or sometimes stating outright) that if they are unwilling to voluntarily live up to their end of the bargain, that you will ask the court to make them do so. Well-drafted demand letters are often successful in resolving the breach, because many parties would rather comport with the demand than face expensive and time-consuming litigation.

If the breaching party chooses not to comply with a demand letter, the next step is litigation. Through litigation, you ask a judge to find that a breach has occurred and to order that the other party either perform under the contract or compensate you for any resulting damages.

What If I Have More Questions?

If you need assistance in enforcing a contract, please contact the Alderman Law Firm for your free consultation at (720) 588-3529.