A contract is a legally-binding promise between two parties. In Atlanta, contracts can either be spoken or written, and they primarily concern sales, tenancy, or employment. Each party is expected to perform a specific duty or pay a particular amount for a service. Failure to meet the agreed-upon obligations leads to what is often referred to as a breach of contract.
Breach of a business contract leads to contract litigation whereby the breaching party is allowed to seek legal remedy.
Types of Contract Breaches
To better understand how contract disputes work in Georgia, you need to know the different types of contract breaches, whether it’s a non-compete agreement or severance agreement.
A minor contract breach takes place when one party of an agreement fails to meet a part of their obligation as per the contract as opposed to violating the entire contract. This type of breach, however, does not affect the whole business relationship. One can sue the party for actual damages.
A material breach of contract, also known as a total breach, impairs the entire agreement. In material breach of contract cases, one of the parties fails to do what they said in the contract, thus destroying the entire contract. According to the Restatement of Contracts, information on the following should be presented at the law office:
- The extent to which the injured party is affected
- The amount the injured party is supposed to be paid according to the contract
- How badly the contract terms were violated
- Fair dealing standards of the agreement
The injured party is allowed to call off the contract and demand for damages.
The fundamental breach has close similarities to the material breach. The difference is that a fundamental breach is an intolerable legal issue where the non-breaching party can sue the other party and end the contract.
In this type of breach, one party stops keeping their end of the deal. This often leads to an incomplete agreement. It could be anything from real estate payment rejection to failing to deliver an ordered product. The injured party is allowed to approach a law firm for help with pursuing a remedy, which is often in the form of payment.
How to File a Breach of Contract Claim
If you get involved in a breach of contract, you can get two types of compensation from business disputes: expectation damages and consequential damages.
How do you file a claim? Start by sending the breaching party a breach of contract letter. This is to let the party know that you will be pursuing business litigation if they fail to resolve the issue. If nothing changes and you are forced to file a lawsuit with the help of contract attorneys, business law provides that you submit a copy of the letter, contact information and other documents that will prove your case.
Let HKM Employment Attorneys guide your path through an employer’s breach of contract. It’s just one of our practice areas concerning employment law. Our employment and breach of contract attorneys will detail the remedies for your situation. We represent clients across Metro Atlanta, including Fulton County, DeKalb County, Roswell, Marietta, and beyond. Contact us today for an initial consultation.