If the business world were perfect, two parties would enter into an agreement, and the agreement would be upheld without an issue. However, the world is not perfect, and business disputes are inevitable, including breaches of contract. If a breach of contract takes place that affects a small business owner in New York, he or she has the right to seek justice through the civil court system.
What are breaches of contract?
Business contracts create specific obligations that parties who have entered into the agreements must fulfill. A breach of contract takes place if one party in an agreement fails to fulfill his or her contractual obligations. Breaches may occur if people do not perform on time, do not act according to their agreements’ terms or fail to perform altogether.
For example, Company A forms an agreement with Company B that says that A will purchase some of B’s products and that the products absolutely have to be delivered on a Wednesday afternoon, with time being of the essence. If Company B ends up delivering the products to Company A on a Thursday afternoon instead, then a material breach has taken place.
What steps should I take in the event of a breach of contract?
If a contract into which you have entered is allegedly breached, you may want to have this contract enforced based on its terms, and you may attempt to recover for financial harm stemming from the reported breach. However, if you are unable to resolve the dispute informally, you may decide to file a lawsuit with the help of a knowledgeable attorney in the state of New York.
The chief remedies available for breaches of contract include cancellation and restitution, damages, and specific performance. Damages in particular can be compensatory damages and even punitive damages, which are intended to punish the wrongful party and are awarded in cases of egregious fault. In cases involving breaches of contract, liability has to be established to the satisfaction of the civil courts hearing the cases before claims for damages will be adjudicated.
A monetary award cannot undo the events leading to the harm caused by a breach of contract, but it may help the small business owner affected by the breach to experience a sense of justice in such an ordeal.