In an ideal world, agreements would be entered into a contract of which both sides would, gain, benefit or profit and be pleased with the outcome, and no disagreements would arise. But in the actual world of business, unforeseen delays happen and financial hiccups can suddenly popup, and other unexpected events can occur to impede or even halt a successful contract from being completed. The following is an overview of what could happen if a ‘breach of contract’ should occur and your options should such a breach occur.
What is a breach of contract?
A business contract creates assured commitments that are to be fulfilled by the parties who entered into the legal agreement. Legally, if one party fails to fulfil any of its contractual obligations as stipulated in the contract agreed upon, it is known as a “breach” of the contract. The details may vary, a breach can occur when a party fails to complete on time, does not perform accurately with the terms of the agreement, or does not execute at all. A breach of contract will usually be classified as either material or immaterial for use of determining the appropriate legal solution for the breach.
What happens after a contract is breached?
When a breach of a legal contract occurs or is declared, one or both of the parties involved may wish to have the contract implement on its terms, or may try to reclaim for any financial distress caused by the alleged breach. If a fall-out over a contract arises and informal attempts at resolution fail, the most usual next step is a lawsuit. If the amount at issue is below a certain figure the parties involved may be able to settle the issue in small claims court.
For professional assistance with lawsuits get in touch with Dreyer Engelbrecht Attorneys, based in Alberton, Bedfordview, Johannesburg and Vereeniging. We provide excellent customer service and complete customer satisfaction.