Breach of Contract

The average person makes contracts nearly every week. Unless you work with contracts regularly, you may not be familiar with all the types of contracts that you enter into in your daily life. Most of American contract laws come from England. The law refers to these laws as “common law.” How a party enters into a contract has changed dramatically since then. The basic principles remain the same – if there is an offer, acceptance and consideration the contract is valid, and breaking the contract comes with consequences. At Freundlich & Littman, LLC, we can help you navigate contract breach law to determine your rights as a contract holder or signee.

Frequently Asked Questions:

• Will I be held liable if I breach a contract?
  • If you do not follow the contract that you knowingly agreed to then you could be found in breach of your contract and you may be held responsible for any damages incurred by any parties.
• What happens if there is a breach of contract?
  • If there is a breach of contract, and the parties cannot reach an agreement, either party may file a civil lawsuit by contacting an attorney who specializes in this area.
• Should I call a lawyer if another party breached a contract?
  • If you feel that you cannot reach an agreement outside of court once there has been a breach of contract then calling a lawyer is a reasonable course of action.

Breach of Contract during COVID-19

COVID-19 affects are unprecedented in both the human toll it has taken and the parallel devastation the virus has caused to the economy.   As many businesses have been brought to a standstill, contractual obligations have been breached and ignored.  In many cases, parties could have viable excuses for failing to perform their contractual obligations. On the other hand, some parties may be using the epidemic  to inappropriately circumvent obligations that under the law, they are still responsible to perform.

It is important to have a legal expert review the terms of your contract and analyze them contextually to determine whether the offending party has an inexcusable breach of its obligations under the terms of your contract. Parties may cite impossibility or impracticability as reasons they can no longer comply with terms of an established contract.  This would mean that under the circumstances it has become impossible for the party to comply with their contractual obligations.  Similarly, under these circumstances companies might exercise a defense under a Force Majure provision, that is an “act of god” has made it impossible for the parties to adhere to their obligations under the contract.  That said, it will ultimately come down to how the contract is drafted and whether the parties comply.  A proper analysis will look at the efforts of the parties to comply with the terms of the contract, and whether the cited defenses are justifiable.

Freundlich & Littman, LLC specializes in breach of contract disputes. If you are in a contractual dispute, call us and have us perform a free evaluation for you today.

Types of Typical Contracts

There are some contracts that an individual typically comes across. A party can breach these contracts for a number of reasons:

• Employment: Employment contracts are a common contract. Most people sign these contracts when they first start or relatively soon afterward. These contracts could be non-compete agreements during or after employment.
• Terms of Use/Service: Trust us – you sign these all the time. Every website that you sign up for and every update on your cell phone will require you to click the “Agree to Terms” button. Those terms that no one ever reads are a contract. Clicking that you agree is essentially signing your name on the proverbial dotted line.
• Loans: Whether you signed up for student loans for graduate school or a home mortgage, loans are contracts. In exchange for money, you agree to payments with interest over the next 20 to 30 years.
• Business: You may own your own business or work for a business that uses outside vendors for supplies or services. If you do, you probably enter into contracts on behalf of your company. What happens if something goes wrong and the goods or services are not what was promised?

Breach of Contract Definition

To breach of contract means to violate the terms of an agreement. Contracts can be either oral or written. In the states of Pennsylvania and New Jersey, both oral and written contracts are acceptable and legally enforceable. Breaches of contracts can occur in either type of contracts.

To illustrate this concept better, take employment contracts. Employment contracts often come with a non-compete clause or even a separate contract altogether. These contracts typically state that you will not work for a competitor while an employee with the business that you work for. If you work for a company that manufactures and develops software for filing taxes, taking on freelance work with another company would breach the contract.