According to recent statistics, more than 30% of cases that go to court for breach of contract are thrown out by the courts for a variety of reasons. Often, when people sign a business agreement, they don't realize what they are signing or what types of contracts will be enforced by law. Before you attempt to sue a person or business for breach of contract, educate yourself on contract law and be sure you understand what you have signed away.
In order for a breach of contract case to be declared valid, it must follow a stringent set of guidelines. If you feel that the person with which you signed the contract is in breach, first ask yourself these questions to determine if you have a case.
1. Is the agreement a contract?
In order for an agreement to be considered a contract, one party must agree to give another something else in exchange for a promise. For example, let's say that you've hired a web designer to prepare your website. In the contract, it should state that you will be paying the web designer "x" amount of money in exchange for a website. It is considered a contract because you've agreed to remit payment on the promise that the web designer will prepare your website.
The agreement must be signed by both parties in order for the contract to be valid, and in some instances, the contract must be dated as well. The provisions of the contract must be both�legible and clear, and there must be clearly defined methods of both service and payment. Otherwise, it will not be subject to breach of contract laws.
2. Is the contract enforceable?
Even if the court determines that a contract exists, the contract may still not be enforceable by law, which means that breach of contract is not even an�issue.�There are various contract defenses that can be invoked by the defendant that will render the contract void. An obvious and unfair slant in a contract is one defense; this means that it is obvious that one party is getting more than he or she should, which might indicate that the contract was signed under duress.
3. Did both parties have capacity to contract?
In order for a breach of contract case to be declared valid, it must follow a stringent set of guidelines. If you feel that the person with which you signed the contract is in breach, first ask yourself these questions to determine if you have a case.
1. Is the agreement a contract?
In order for an agreement to be considered a contract, one party must agree to give another something else in exchange for a promise. For example, let's say that you've hired a web designer to prepare your website. In the contract, it should state that you will be paying the web designer "x" amount of money in exchange for a website. It is considered a contract because you've agreed to remit payment on the promise that the web designer will prepare your website.
The agreement must be signed by both parties in order for the contract to be valid, and in some instances, the contract must be dated as well. The provisions of the contract must be both�legible and clear, and there must be clearly defined methods of both service and payment. Otherwise, it will not be subject to breach of contract laws.
2. Is the contract enforceable?
Even if the court determines that a contract exists, the contract may still not be enforceable by law, which means that breach of contract is not even an�issue.�There are various contract defenses that can be invoked by the defendant that will render the contract void. An obvious and unfair slant in a contract is one defense; this means that it is obvious that one party is getting more than he or she should, which might indicate that the contract was signed under duress.
3. Did both parties have capacity to contract?
- Contracts signed by minors are considered void for lack of capacity.
- An agreement is not a contract unless services or money are exchanged.
- A contract signed under duress is not enforceable in court.
|
|