Contracts are legally binding, meaning that if either party does not hold up its end of the agreement, the other party can hold that party financially accountable in civil court. Contracts apply in all types of situations, including at the workplace. If you have been accused of breaching a contract, you need to speak to an attorney at once because the implications can be serious.
Four Types of Breach of Contact
The four types, or levels, that apply to breach of contract are as follows:
- Fundamental Breach: The most significant type of breach of contract is a fundamental breach. For instance, if your employment contract stated that you had to complete a certain number of projects at a specific degree of quality, and you simply did not show up to work or do any of your assignments, a fundamental breach of contract has occurred;
- Material Breach: A material breach is still a significant breach of contract. For example, you completed your projects, but they were late and not to a high standard set by your contract;
- Minor Breach: Less significant is the minor breach. In this scenario, you completed your projects, but they may not have been to the satisfaction of your employer; and
- Anticipatory Breach: The party tells the other that they plan to breach their contract in the future, possibly because they knew that they could not deliver in time.
Injunctions
An injunction may be an alternative to a monetary penalty for the breaching party. Injunctions can be a prohibition on something, an order to carry out a duty, or an order to pay restitution. In some cases, an injunction may be imposed if:
- The breaching party was unable to fulfill an obligation;
- The value of the damage cannot be determined; or
- When a financial remedy is not suitable.
Statute of Limitations
If you signed a contract twenty years ago and then violated the terms of that contract, chances are that the other party is confused about the statute of limitations that applies to contracts. A written contract for payment or property has a statute of limitations of 10 years, while all other contracts have a statute of limitations of five years, according to statute 516.110 and statute 516.120, respectively. This means that an action cannot be brought against you after that time period.
Employment Attorneys Can Help
Depending on the type of breach of contract that you are facing, you may be up against a lawsuit, serious monetary restitution, or other penalties set by an injunction. We at the law offices of HKM Employment Attorneys LLP understand just how confusing and misleading some contracts can be and will do everything in our power to help provide the best possible outcome for the situation that you are in. With so much at stake, we strongly encourage you to call us today before accepting a settlement. Talking to an attorney about all of your other options is vital to coming to a reasonable agreement or beating the civil penalties that you face.
