Contracts are fundamental to the success of Florida businesses. There are many different purposes for contracts, but all contracts outline the relationships and expectations of the contracting parties concerning their shared purpose. Contracts exist to solidify employment, transactional, and business arrangements.
Unfortunately, not all parties respect the terms of their contracts and breaches can result. This post will examine what a breach of contract actually is and what can be done about it. No legal advice is presented in this post, and when victims of contract breaches suffer losses, they may wish to speak with business law attorneys about their possible or pending claims.
The elements of a contract
At the heart of a contract is an agreement. The agreement is formed when one party offers another party something, and the second party accepts the offer. Instead of accepting an offer, a party can reject or counteroffer an offer as well.
In addition to offers and agreements, contracts also require consideration. Consideration is an exchange of something that happens upon the execution of a contract. Often, consideration is money paid from one party to the other for performance on the contract’s terms.
Understanding a breach
Contractual breaches happen when individuals fail to perform as they have promised under the terms of their agreements. When a breach happens, the non-breaching party may suffer losses as a result of the other’s actions or inaction. Remedies for breached contracts can include but are not limited to:
- Specific performance: This remedy forces a breaching party to perform as they promised under a contract.
- Restitution: This remedy returns a party to where they were before the breach.
- Damages: Damages compensate a victim of a breach for their losses.
Depending on the nature of the contract, the best remedies for a breach may vary. It is therefore important that individuals discuss their needs with their trusted business law lawyers for help and guidance.
