Strong contracts can lead to efficient and effective business practices. Unfortunately, even a strong contract can become complicated when the other side breaches negotiated terms. Although you can take legal action to try to remedy the breach that’s occurred, possibly leading to specific performance of the contract’s terms or the recovery of compensation for damages suffered, there’s a good chance that your breach of contract case will be challenged.
Therefore, as you head into the legal arena, you need have to not only have strong evidence supporting your position, but you also have to be prepared to avoid common errors that can quickly tank a breach of contract case. That said, let’s dive in and look at some errors that you’ll want to be sure to avoid when you take legal action on your claim.
Avoid these mistakes in your breach of contract case
There are multiple errors that you can make in a breach of contract case. So, even if your claim seems straightforward and easy to prove, you’ll want to be cognizant of the following as you proceed with your breach of contract case:
- Conditions precedent: Most contracts contain terms that have to be met before filing a formal breach of contract lawsuit. This may include notifying the other party of the alleged breach, giving the other party a certain amount of time to remedy the breach or agreeing to enter mediation to try to resolve the dispute. If you don’t adhere to these conditions precedent, then your case will quickly be dismissed.
- The wrong impression during settlement negotiations: Even when you get to the point that you can file a formal breach of contract case, you’re probably going to try to negotiate resolution prior to your case heading to trial. During these negotiations, you have to be careful with what you say so that you don’t inadvertently lock yourself into a position that’s unfavorable to your position. So, before sitting down at the negotiation table, make sure you have clear goals and a strategy targeted to achieve the outcome you want.
- Mitigation of damages: Once a contract has been breached, you should take steps to mitigate your damages. This might include negotiating a new contract with a different party or reducing your costs in some way. If you don’t take action to mitigate your damages, then the court will likely frown upon you, and the amount of damages that you can claim will be lower than you expect. So, be sure to document your attempts to lessen the harm caused to you.
- The statute of limitations: Pursuant to statute, there’s only so long you can wait to file a breach of contract case. If you miss the filing deadline, then you’ll be barred from seeking the compensation that you otherwise deserve. Keep in mind, too, that your contract may specify that the laws of another state will apply to your agreement, which could shorten the statute of limitations.
Breach of contract cases can seem relatively simple. Yet, a lot of them end up becoming more complicated than initially anticipated. That’s why it’s crucial that you put in a thorough amount of preparation and anticipate breach of contract defenses, avoid costly errors and develop compelling legal arguments.