People enter into business with others to reach a beneficial conclusion. When either party does not fulfill his or her end of the bargain, the party left lacking may seek recompense through other measures.
Especially in cases where there was a contract in place, a claimant may bring into question whether the party is functioning lawfully. There are a few key elements of a breach of contract that business owners should know.
Types of breach
A breach of contract occurs when people or businesses fail to uphold their portion of the contract. This may occur in three ways:
- Failing to fulfill a contract
- A party hindering another from completing contracted tasks
- Sharing an intent not to fulfill a contract, or repudiation
In the case that any form of breach occurs, the non-breaching party may seek restitution through the court. However, this option is only effective when there is proof of a contract.
It is important for both parties to understand the purpose of damages in the context of a breach of contract case. In short, damages are a form of payment to put the claimant in the same position as if the other party fulfilled the contract. Parties should note that with the purpose being to allow the party that was short-changed to get back on even ground, any claims above this amount may not be awarded.
Along with damages, the court and the petitioning party may choose additional remedies. Mississippi statute 79-19-33 denotes all the remedies for a breach of contract. Outside of damages, parties may request that the other party simply fulfill the contract agreement. If taken to court, the judge may order the other party to do so. The claimant may also choose to negotiate a new agreement with the other party, which may exclude the portion of the job that is in question.
These are just the key elements of a breach of contract case. Take some time to understand the laws and the process to determine the best option for you.