Our Atlanta Breach of Contract Attorneys Will Help Resolve Disputes
Contracts are the oil that lubricates the gears of a profitable company. They define the expectations and terms of relationships between parties transacting business. A contract is only as strong as its language; however, when conflicts arise, a business needs attorneys with experience interpreting and enforcing contracts to protect its rights. Poole Huffman has broad experience in resolving disagreements over contracts between businesses or individuals. Our knowledge of contract and business law gives our Atlanta breach of contract attorneys the tools they require to fulfill a client’s expectations regarding the contract they relied on.
When a party breaches a contract, the result is never simple. Damages generally exceed the simple loss of benefits explicitly provided for in the contract. If one part of a business ceases to operate as expected, then other parts of that business are often negatively affected. To make matters more complicated, often a check from the breaching party is not enough to make up for the breach, but sometimes the only relief will come in the form of that contract being carried out as was originally intended. Our attorneys have faced these issues before and know how to determine which resolution works best for each client’s unique situation. Poole Huffman is as comfortable in the mediation room as he is in the courthouse. We give our clients creative and cost-effective solutions to contract disputes to both ensure their rights are enforced and to protect their bottom line.
Types of Contract Disputes
Contract disputes arise for a variety of reasons. They can take many forms depending on the nature of the agreement. Some of the most common types of contract disputes include:
Breach of Contract
Arguably, the most common type of contract dispute is when one or more parties are allegedly in breach of their terms. A breach can involve the failure to complete a payment, deliver goods, or otherwise uphold that party’s end of the bargain. A breach can be minor, allowing options to work around it and continue the agreement. They can also be major, which means the issue is so significant that the contract may need to be terminated.
Fraud
Fraud or misrepresentation can also be a significant issue in a contract. When one party enters into an agreement based on false statements, it may constitute fraud. This might include withheld information about the party’s ability to carry out the contract or the value of the services provided. A contract can be terminated if it was entered into under false pretenses.
Nonperformance
In service and construction contracts, delays are a frequent source of litigation. Whether the delay is excusable often depends on the contract language and evidence of good faith.
Ambiguity and Interpretation Disputes
When contract terms are unclear or open to multiple interpretations, disputes can arise over what the parties actually agreed to. Courts often examine the intent and communications of the parties to decide what the parties truly agreed to.
Termination
Disputes may arise when one party prematurely ends an agreement or refuses to renew it, especially in long-term business relationships. These cases often hinge on whether the parties complied with existing termination clauses and notice requirements.
How to Gather Evidence in a Contract Dispute
Substantial evidence is the foundation of any contract dispute case. Whether you’re pursuing or defending against a claim, proper documentation can make the difference between success and failure.
Preserving Documents
Start by collecting all versions of the contract, including drafts, addenda, and renewal documents. If changes were made via email or text message, retain those communications as well. The underlying contract is easily one of the most important pieces of evidence you can find. If you believe the terms of the agreement changed, you will need proof of that as well.
Details Regarding Breaches
Many conflicts boil down to whether or not one party performed according to the contract or breached its terms. Keep records of everything, from invoices to project milestones, in order to prove your case. These documents can demonstrate whether each party met its obligations.
Save Communications
Emails, text messages, and meeting notes often reveal the intent of the parties and can prove acknowledgment of performance problems or promises to correct them. Any record communications between the parties could be the strongest possible evidence, especially if there are any admissions of wrongdoing.
Expert Analysis
In complex cases, financial or industry experts can help or explain complicated data or systems to a jury. Their testimony may provide the credibility needed to support your claim in court.
Common Defenses to a Breach of Contract Claim
While breach of contract claims are common, not every breach gives rise to liability. There could be more than one viable defense strategy, depending on the circumstances. Some examples include:
No Valid Contract
If essential elements of a contract are missing, the document in front of you may not be enforceable. This defense often applies to oral agreements or incomplete negotiations in addition to completed deals.
Substantial Performance
A party may argue that they substantially performed their obligations even if minor aspects were left undone. Courts may find that the breach was not material and does not justify full damages.
Impossibility
When performance becomes impossible due to unforeseen events such as natural disasters, the court may excuse a defendant from performing the remaining obligations under the contract.
Fraud by the Other Party
If the plaintiff induced the contract through fraud, concealment, or false statements, the defendant may argue that the agreement is voidable and unenforceable.
Prior Breach
A party that first breaches a contract typically cannot recover damages from the other party. If the plaintiff failed to perform, that earlier breach can serve as a defense.
Statute of Limitations
Under Georgia law, most contract claims must be filed within six years for written agreements and four years for oral contracts. Filing too late can bar recovery entirely.
What Are My Damages?
Determining damages in a contract dispute can be difficult to calculate without help. Courts aim to restore the injured party to the position they would have been in had the contract been performed correctly, and they can include the following:
Direct Damages
These are the most common and straightforward damages, representing the actual financial losses caused by the breach. Examples include unpaid invoices, the cost to complete unfinished work, or the value of goods not delivered.
Consequential Damages
Also known as special damages, these cover indirect losses arising from the breach, such as lost profits, operational delays, or damage to business reputation. However, they must have been reasonably foreseeable at the time of contracting.
Restitution
In some cases, a plaintiff may recover costs incurred in reliance on the agreement or seek restitution to reclaim benefits unjustly retained by the breaching party.
Mitigation of Damages
The injured party has a duty to reduce losses by seeking alternative suppliers or customers when possible. Failure to mitigate can reduce the final award at trial.
Reach Out to Our Atlanta Breach Of Contract Attorneys Today
Contract disputes can be distressing, but positive outcomes are still possible. In fact, taking the right approach to these issues can resolve conflicts amicably before they lead to litigation. At Poole Huffman, our Atlanta breach of contract attorneys are ready to help you resolve these issues in a way that benefits your organization. If a settlement is not possible, we are not afraid to take your claim to court and hold the other side accountable. Contact us today for a confidential consultation.