What You Should Know About Breach Of Contract?
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Contracts are vital to every business. Businesses make contracts for everything. Whether the other party is a supplier, a customer, or another business in its area, they must uphold their end of the contract. When the other party breaches the contract, businesses can lose.
If a business’s contract has been broken, it most likely has legal recourse to make things right. However, keep in mind that most of these solutions will not last forever. That is why it is critical to understand what you should know about breach of contract.
Elements of a Breach of Contract Claim
To prove that someone has broken a contract, you need to prove the following:
- There is a contract in place,
- The other party breached the contract, and
- A party suffered damages due to a breach of contract.
Every part of a breach of contract claim has several aspects that your lawyer may need to investigate.
Element #1: Demonstrating the Contract’s Existence
To establish a breach of contract in Michigan, you must first show that there was a legal contract in the first place. The other party may claim that the contract is invalid if they are trying to escape their duties.
Element #2: The Other Party Violated the Agreement
To demonstrate a breach of contract in Michigan, you must show that the other party failed to uphold their contractual responsibilities in a significant way. You must, however, be aware of many defenses to a breach of contract claim. Having an attorney on your side can help you foresee these defenses and choose the best way to counteract them.
Element #3: You Sustained Losses
Damages are the final part of a breach of contract suit. Even if you can show that the other party broke the contract in a big way, you still have to show that the breach caused you real damage. For instance, suppose a caterer backed down on an arrangement to serve 1,000 meals for an event you were organizing. If you were able to locate another provider to serve the same food for the occasion at the same cost, it will likely be difficult to prove that the caterer’s breach caused you harm.
Michigan’s Statute of Limitations for Breach of Contract
Like most business lawsuits, breach of contract claims have statutes of limitations. A statute of limitations limits how long a person or entity has to file a claim following an incident. Under Michigan’s statutes of limitations for breach of contract, a party usually has six years to file a claim. Notably, several types of contracts have different restrictions on time than this one.
However, Michigan contract law imposes varying timeframes for a few types of contracts. These time limits can be anywhere from two to ten years, so you should talk to a contract lawyer to find out which one applies to your claim.
Seek Advice From a Knowledgeable and Experienced Michigan Lawyer Today
Goldman and Associates represent both individuals and businesses of all shapes and sizes. We are well-versed in Michigan’s contract law and can provide you with all the pertinent information you should know about breach of contract. Call or book an appointment today to tell us more about your situation and find out what we can do to help you.