Ideally, when two parties enter into an agreement, each side will fulfill its obligations to the other without any problems. However, financial issues or other unexpected problems may make it difficult or impossible for that to happen. If a party fails to live up to the terms of an agreement, itis said to be in breach of contract. A breach can be considered material or immaterial.
The type of breach that occurs can be important when determining what type of relief the victim of the violation could be entitled to. It is possible to resolve a breach of contract case through settlement talks in which the party that breached the contract may be given an opportunity to perform its duties. If settlement talks don’t work, it may be necessary to resolve a contract dispute in court.
Cases may be brought to small claims court if a party is likely entitled to less than $7,500 in damages. The parties to the contract may also decide to work with a mediator to end their dispute. In some cases, the party that didn’t breach the contract could decide to cancel the deal altogether. If the contract is canceled, neither side has a future obligation to provide anything of value to the other.
Those who are preparing for business litigation may want to have legal representatives help them to do so. An attorney may be able to review a contract to determine if it was breached and whether the breach was material or immaterial. Legal counsel may also be able to develop a strategy to help a business obtain compensation or other forms of relief.