Phoenix Breach of Contract Lawyers

Arizona attorneys secure remedies for broken agreements

In Arizona as elsewhere, an ever present risk of doing business is the potential for breach of contract disputes. No matter how carefully a contract is drafted, circumstances can arise that lead to nonperformance of key duties by either party, whether through inability, neglect or deliberate refusal. Whatever side of a breach of contract dispute you’re on, having an experienced business attorney navigate the complexities of the case can make a significant difference. At Law Offices of Donald W. Hudspeth P.C., a Phoenix breach of contract lawyer can protect your rights and work to resolve the conflict on the best possible terms.

Types of contract breaches

A breach of occurs when one party fails to uphold their contractual obligations, causing economic harm to the other. There are three primary types of breaches:

• Material breach — This is a failure to fulfill a major contractual obligation so as to undermine the agreement’s purpose and make it unachievable. A material breach often justifies the non-breaching party terminating the contract and seeking damages.
• Minor breach — This is a less serious violation where the breaching party doesn’t fulfill part of the contract but the overall terms are still met. The non-breaching party must still fulfill their obligations, though they may seek damages for any losses.
• Anticipatory breach — This occurs when one party indicates before the agreed date that they will not fulfill their obligations. The non-breaching party may then sue for damages, even before the breach fully occurs.

In any case alleging a breach, the non-breaching party has a duty to act responsibly to mitigate damages.

Common causes of contract breaches

Understanding the causes of a breach can help business owners prevent disputes or better address them. Breaches can be due to any of the following:

• Failure to perform — One party may fail to deliver goods, services or payment as specified in the contract.
• Inability to perform — Sometimes a party can no longer fulfill their obligations due to circumstances like financial trouble, illness or lack of resources.
• Miscommunication — Ambiguous or unclear contract terms can lead to different interpretations and ultimately to a breach.
• Force majeure — Events beyond anyone’s control, such as natural disasters, can make it impossible to perform the duties of the contract.
• Non-payment or delayed payment — Payment issues are a frequent source of breach, especially in business contracts such as a breach of a service agreement.

In many cases, there can be disagreement between the parties as to whether a breach has occurred.

Legal remedies for breach of contract

The non-breaching party has several legal remedies available. The principal ones are:

• Compensatory damages — This is compensation of the non-breaching party for actual losses incurred due to the breach.
• Consequential damages — These are indirect damages that occur as a consequence of the breach, such as loss of business or reputation.
• Specific performance — A court might order the breaching party to perform their contractual obligations rather than pay damages.
• Restitution — This is payment to the nonbreaching party of the value of their partial performance of the contract.
• Rescission and reformation — In cases where vague terms have led to misunderstanding, the contract can be dissolved or corrected. 
• Liquidate damages — Clauses in a contract can stipulate damages to be paid for particular nonperformance, provided they are reasonably related to the losses projected.
• Punitive damages — In cases of willful misconduct, the court may award punitive damages to punish the breaching party.

A court can also issue an injunction, prohibiting a party from taking certain actions that might cause irreparable harm. This can occur, for example, in a case alleging breach of a non-compete agreement.

Proving a breach was committed

Proving a breach requires clear evidence showing that the contract was valid, the obligations were not met and the non-breaching party suffered or will suffer harm as a result. 

Breach of contract litigation process

Many contracts provide for mediation or arbitration of disputes. If these processes fail or if the parties cannot reach an amicable resolution, the case can proceed to litigation, which includes these stages:

• Filing of a complaint and answer
• Discovery 
• Motions by both parties
• Trial
• Appeal if necessary

Throughout the process, skilled attorneys will seek to come to settlement terms whenever they are in the client’s interests, preserving as much as possible the business relationships that may hold value to both sides.

Contact a proven business law firm for breach of contract representation in Phoenix

The Law Offices of Donald W. Hudspeth P.C. in Phoenix represents businesses in breach of contract disputes throughout Arizona. Call 866-696-2033 or contact us online to schedule a consultation.