Contractual agreements are essential for businesses – whether it’s to develop business relationships with vendors, employees, or other entities. Unfortunately, when a party cannot uphold its contractual obligations, a contract is breached. But how do you know when your contract has been irreparably broken? Our Pennsylvania business law attorneys break it down for you below.
Do you have a breach of contract? Contact our Pennsylvania business law attorneys today at (610) 550-8042 to schedule a consultation!
When Is a Contract Irreparably Broken?
Even though a party is unable to fulfill every part of a contract, there are often remedies to fulfill the purpose of a contract. However, there are cases when a contract is so deeply broken that it defeats the purpose of the contract entirely – this is called a material breach. Ultimately, material breach significantly defeats the purpose of the contract. The breach is so large that it excuses the other party’s actions and warrants termination of the entire contract.
Can I Seek Compensation After a Material Breach?
To determine if a breach of contract exists, you must prove that you have been deprived of benefits that you expected to receive through the contract. You must also determine whether you can be reasonably compensated for your loss. For example, if your business had contractual agreements with a vendor to get supplies on a regular basis, but the vendor failed to deliver on those supplies and as a result, your business suffered a loss, you can seek compensation for your breached contract.
Examples of Material Breach
An example of a material breach is when a business creates a contract with a vendor. If a business completes all of the necessary paperwork and pays the vendor for the materials, but the vendor refuses to provide the business with the agreed-upon materials, it would be considered a breach of contract. In this case, the vendor’s inability to fulfill the business’ order makes it a material breach since it completely deprives the business of what they expected to receive through the contract.
However, suppose the vendor was only able to fulfill a small portion of the agreed-upon amount or was delayed, the business could find a remedy to still make the contract work.
What Remedies are Available for a Material Breach of Contract?
Generally, a material breach makes it difficult or nearly impossible for the parties to complete their contract. Therefore, the non-breaching party can seek compensation for the breach of contract and recover from the damage caused by the incomplete fulfillment of their deal. Some examples of remedies include:
- Requesting a specific performance (a new condition)
- Cancel the contract
- Issue of an injunction
- Contract reformation
Do I Need to Hire a Lawyer If I Am Facing a Material Breach of Contract?
A material breach of contract is a complex issue and does require an experienced attorney. If your contract has been breached and your business has suffered a loss as a result, you should have an experienced attorney guide you through the process. An attorney can help you determine the remedies available to help you recover the damages caused by the breach of contract.
Our team at Weisberg Law has helped businesses across Pennsylvania understand their rights and present their claims for breach of contract. We have helped thousands of clients with even the most complex cases since the inception of the firm. Our attorney Matthew Weisberg has had the opportunity to fight for the rights of clients before the Supreme Court. Our team has the knowledge and experience needed to help you with your case from start to finish.
Get in touch with our team today at (610) 550-8042 to schedule a consultation!