Companies and individuals enter into contracts virtually every day and these agreements form a crucial aspect of running and managing a business. Conceptually most contracts are fairly straightforward, they are simply agreements where one party offers to pay another for some particular goods or services. Some breaches of contract may be minor and be dealt with in due course without affecting your business; however, when there is a significant breach of an agreement concerning an important aspect of your business, it can have devastating effects on your company.
Discuss Your Case with a New York City Breach of Contract Attorney
If you are ever confronted with a breach of contract claim, it’s essential to seek help from a seasoned attorney who can help you minimize the damages and swiftly assist you to recover your losses. At Woods Lonergan, our skilled business attorneys have extensive experience representing clients in a wide range of breach of contract matters. Contact Woods Lonergan today to find out how we can help protect you and your business.
When Does a Breach of Contract Occur?
When a party to a contract doesn’t receive what they have bargained for from another party, a breach of contract has likely occurred. In New York, both written and oral agreements can be subject to a legitimate claim. Claims typically involve one party not performing the contract terms as promised. Other cases involved a party failing to take action that prevented the other party from fulfilling its contractual obligations.
Additionally, breach of contract claims can occur when one party makes it clear to the other party that they don’t intend to perform their obligations under the contract. If you believe that your business contract has already been breached or will be breached in the future, it’s crucial that you reach out to an attorney to explore your options for relief. Generally, the sooner you intervene, the better your ability to protect your business.
Remedies for Breach of Contract in New York
Woods Lonergan has an in-depth knowledge of New York contract laws. After we listen to your case, we can help you understand what legal remedies may be available to you. Damages are determined towards the end of a breach of contract case. We can help you understand the types of damages to which you may be entitled.
General Damages
Parties whom a breach of contract has injured are entitled to recover general damages and consequential damages. General damages are the natural and probable consequences of the breach of contract. In other words, general damages compensate a party for the lost benefit of its bargain. The non-breaching party needs to be put in the same economic position it would be in if the breaching party performed its obligations under the contract. For example, when a sale of goods contract has been breached, the buyer typically recovers the difference between the contract price and the market price for the goods at the time of the breach. If the market price is lower, the buyer doesn’t have any damages, but the buyer will have damages if the market price was higher at the time of the breach.
In some cases, the victim of a breach-of-contract can obtain lost profits that are a direct result of the breach. However, it’s important to point out that victims of a breach of contract have a duty to make a reasonable effort to mitigate their damages. The plaintiff can also pursue reliance damages, also called sunk cost, when their damages cannot be calculated with reasonable certainty. Sunk cost damages can include the money the plaintiff spent preparing for the defendant to perform the contract and their debt obligations.
Consequential Damages
New York courts can also award consequential damages that aren’t the direct result of the breach of contract. Consequential damages include any costs caused by the breaking of the agreement due to special conditions that aren’t typically predictable. For example, suppose the breaching party knew that they needed new furniture to be delivered on a particular day because their old furniture was going to be removed the night before. In that case, consequential damages could include payment for the expense of renting furniture until the correct furniture arrives.
Punitive Damages
When a party breaches a contract willfully, maliciously, or fraudulently, the non-breaching party can pursue additional punitive damages. Courts award punitive damages to punish the offender for egregious behavior and prevent others from acting similarly.
Actual Breach of Contract
An actual breach of contract occurs when a party fails to deliver what was promised in a binding contractual agreement. When one party only partially fulfilled their obligations, an actual breach of contract occurred. For example, suppose a business agreed to deliver 10,000 units of an item to another business on a specified date. The business only delivered 7,000 items. In this scenario, the agreement has officially been unfulfilled, and the non-breaching party can pursue damages.
Anticipatory Breach of Contract
When one party states that they anticipate being unable to fulfill the contract, an anticipatory breach of contract has occurred. The advance notice gives the non-breaching party time to adapt and respond. For example, a buyer may signal the seller that it can’t pay for purchased items in total. If you anticipate a break occurring, we recommend discussing your case with an attorney as soon as possible. Your attorney can help you understand your rights should a breach concur and take steps to limit the damage to your business.
Material and Minor Breaches of Contract
The amount of damages you can recover depends on whether the breach was material or minor. Material breaches of contract occur when the bridge is substantial. For example, when a debtor fails to pay a creditor back or doesn’t honor a key element of the contract, a material breach has occurred. Minor breaches of contract occur when a party fails to perform an element of the contract but has delivered a majority of what they promised in the contract.
Contact an Experienced Breach of Contract Attorney in New York City
The attorneys at Woods Lonergan have successfully navigated many types of contractual conflicts. We will leverage our resources and knowledge to work towards the favorable results you need and deserve. Our attorneys understand how unsettling it can be to face an unexpected lawsuit regarding a breach of contract. We provide personalized legal counsel and will give you and your case the attention you deserve. Contact Woods Lonergan today to learn more about your rights and legal options.
Woods Lonergan PLLC helps clients with breach of contract matters throughout NYC including the boroughs of Manhattan and Brooklyn.