What Happens if You Break a Contract?

When you sign a business contract, it’s important to recognize that you’re entering into a legally binding agreement with the other parties involved. When a party to a contract fails to fulfill the obligations that they signed off on, it’s called a breach of contract, and it can lead to legal remedies for those negatively affected by the breach. If you’ve been accused of breaching a contract or if another party has negatively affected your business through breach of contract, don’t wait to consult with an experienced Arkansas business and commercial law attorney.

Common Ways that Contracts Are Breached

Breaking – or breaching – a contract refers to failing to live up to the included terms that address your obligations. While no two cases involving breached contracts are alike, such cases all tend to fall into categories like the following:

• Failing to deliver services or goods according to the terms outlined in the contract
• Failing to deliver the required quality of services and goods outlined in the contract
• Failing to make payments in accordance with the contract’s requirements
• Failing to fulfill any other terms included in the contract
• Misrepresenting the contract’s terms

Legal Remedies for Contractual Breaches

The primary legal remedy for contract disputes in the State of Arkansas is monetary damages that are designed to compensate the wronged party for the covered losses they experienced. These losses represent the difference between the value of what was promised in the contract and of what the wronged party received.

In some cases, claimants can also seek compensation for the additional expenses they incurred as a result of the other party’s breach. In cases involving serious breaches, monetary compensation can be deemed inadequate, and in such cases, the claimant can seek specific performance from the party that breached the contract. This generally amounts to requiring the other party to fulfill the original terms of the contract.

The Required Elements

The elements necessary for you to bring a successful breach of contract case in Arkansas include the following:

• A valid contract exists between you and the other party.
• You performed your obligations as outlined by the contract.
• The other party breached the contract by failing to perform their outlined obligations.
• As a result of this breach, you suffered damages that are addressed by the law, such as a financial loss.

Contractual law is complicated, and having a dedicated business and commercial law attorney in your corner from the outset is always well advised.

An Experienced Arkansas Commercial and Business Law Attorney Can Help

The seasoned Arkansas commercial and business law attorneys at Brown Dunning Walker Fein Drusch PC are well-versed in the intricacies of contract law and welcome the opportunity to help you effectively and efficiently resolve any contract concerns you’re facing. Your case is important to your business, so please don’t put off reaching out and contacting us online or calling 501-588-4460 to schedule an appointment and learn more about what we can do for you today.