Two parties that sign a binding agreement often do so in good faith and with the understanding that each will hold up to their end of the deal. Things don’t always work out that way, as one party may violate the terms and conditions. Doing so is a breach of contract, a violation that may lead the parties into a Florida civil court.
Points about a breach of contract
Generally, when people think of business-related breaches of contracts, they may think of someone signing an employment or service contract with a company. If the company doesn’t pay for work or services or the other party doesn’t deliver, expect a claim to arise.
That’s one example, and a breach of contract comes in many forms. When someone signs a lease agreement to pay rent for commercial space, failure to make payments could be a breach. And just as two people could enter a contract, so may two businesses. For example, an entertainment venue might have a contract with a beverage supplier for specific delivery amounts on particular days.
Litigation and breach of contract disputes
Contract disputes typically arise when someone violates all or part of the agreement. If the injured party proves the breach occurred, the violating party may have to compensate the other party for any losses.
Sometimes an anticipatory breach occurs. That is, the breach has not occurred yet, but the violation is imminent. Knowing a breach will soon happen could give one party a chance to mitigate some or all the damage.
Of course, a contract must be valid for anyone to enforce it legally. The contract containing false and misleading content might not be enforceable. The same could be true when someone signs a contract under threats and coercion.
A person may have compelling reasons for breaching a contract, such as running out of money. So, it may be helpful for both parties to come to a reasonable agreement over the situation.