How Can Breach of Contract Claims Affect Connecticut Business Owners?
Business contracts are an integral part of a successful entrepreneurial career. Whether it is a purchase order, bill of sale, employment contract, lease agreement, or another type of contract, knowing how and when to use contracts is a vital skill. When a party subject to a contract violates any of the contract’s terms and conditions, the violating party may face a breach of contract claim. The party wronged by the violation may be entitled to damages. As a small business owner, writing clear and effective contracts with help from an experienced business lawyer is one of the best ways to avoid facing liability for breach of contract.
Failure to Fulfill the Requirements of A Contract
There are several different types of contract breaches. A minor breach of contract is one that involves non-fulfillment of a minor detail in the contract. These breaches do not impact the overall purpose of the contract and are typically able to be resolved outside of court. An anticipatory breach or anticipatory repudiation occurs when the breaching party notifies the non-breaching party that it will not be satisfying the terms of the contract. A material breach of contract is one that is so significant that it prevents the parties from being able to execute the responsibilities contained in the contract. Anticipatory breaches and material breaches often lead to legal actions.
Defending Against Breach of Contract Claims
If another party has filed a breach of contract lawsuit against your business, contact a business law attorney right away. There are several possible defenses that may help you avoid liability. Affirmative defenses do not challenge the claim but instead assert justifying circumstances. For example, if the terms of the contract were indefinite, you would have no way of knowing how long the agreement should last and can therefore not be held liable for the breach. If there was a mistake regarding an essential fact in the contract, this may make the breach of contract claim moot. If fulfilling the terms of the contract was impossible due to circumstances beyond your control, this may also be a legitimate defense against breach of contract. Lastly, if you were tricked into an agreement through deception or fraud, you may avoid liability for breach of contract.
Contact a Stamford, CT Business Dispute Lawyer
Whether you need help creating rock-solid business contracts or you are facing a breach of contract claim, The Law Offices of Peter V. Lathouris, LLC can help. Whenever possible, our experienced Fairfield County business law attorneys attempt to resolve business disputes outside of the courtroom. However, if this is not feasible, our skilled legal team is fully equipped to aggressively represent you in court. To schedule a free confidential consultation to learn more, call our office today.