If two individuals or organizations enter into a written agreement, it is considered to be a contract. If the one of the parties does not meet their obligations as defined by the agreements, they are considered to be in breach of contract. When this occurs, the dispute can either be resolved through mediation, arbitration or through the court system, and the court system is the most common way of handling disputes.
There are a few ways that a party may be in breach of contract. These can include failing to perform, failing to perform in a timely manner or failing to perform in the way prescribed by the contract. Breaches may be described as material or immaterial depending on how important that portion of a contract was.
When there is a breach of contract, one party is likely to seek a remedy, which may take the form of damages, specific performance, or cancellation and restitution. Damages are the most common types of remedy, and they are generally awarded based on the circumstances of the contract and how it was breached. In most cases, damages will be the amount that is required to put the party seeking them in the same position that they were in before the contract came into force.
Contract disputes can bog an organization down by taking resources away from the running of a business as well as stopping work on a particular project. Having these disputes handled may be essential to reducing their impact. In addition to assisting someone with resolving an argument over a contract, a lawyer may also be able to help an individual or business draft a contract that is understood by both parties and protects their interests.