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Breach Of Contract And You: What You Need to Know

Christine O'KellyBy Christine O'Kelly
May 11, 2009
If you think that breach of contract is something only businessmen need to worry about, think again. Contract violations are a very real problem, causing damage to thousands of entrepreneurs, private citizens, and corporations alike. Although you cannot completely prevent a contract breach from happening to you, the best way to protect yourself is by learning about breaches of contract so that you'll know what to do if you ever find yourself in the situation.

What Is Breach Of Contract?

Whenever two people reach an agreement to exchange one thing for another, they form a contract. There is no legal definition requiring that a contract be set down on paper, nor is there a requirement that it must be written by a lawyer. There are only two restrictions governing what is considered an actionable contract:

1.) All parties must agree. In order for a contract to be legally binding, everyone bound by it must agree to it directly. If a person does not agree to it, they are not bound by it. This is one of the main reasons for putting contracts in writing. When people show agreement to contractual terms in writing with a signature, it is much easier to know the requirements of the contract and show when those terms may have been violated.

2.) A valuable good or service must be exchanged within the contract. For instance, something must be bought or sold. Keep in mind that this requirement only holds when considering breach of contract claims brought to the court; in the non-legal world, a contract could have a broader reach and may have nothing to do with anything of value.

What's The Next Step?

If you believe that you have been the victim of contract violation, you should immediately seek professional legal representation. You may think you understand contract law, but there are many intricacies and loopholes that only a qualified legal professional will know. Unless you yourself are a trained contract attorney with years of experience, be sure to hire someone who is.

Once you have an attorney working with you on your breach of contract lawsuit, he or she will begin organizing your case. In all likelihood, he or she will recommend that you take the case to court. There are two main types of law that apply in breach of contact cases: first, common law, and secondly, the Uniform Commercial Code (UCC).

Common Law

Typically, contracts not primarily for the sale of goods will be treated under common law. This type of law is established by judges and the judicial precedent of individual states, making it a rather unique and subjective type of law. Because these laws can vary so widely from state to state, be sure your attorney is familiar with your state. But do keep in mind that contract violation cases usually go to court in the state where the contract was formed, which may not be your home state.

The Uniform Commercial Code

Contracts whose main subject is the sale of goods tend to fall under the Uniform Commercial Code. Although the UCC is not mandatory, the vast majority of states has accepted it and considers it the law in contract disputes.

Going To Trial

Once you have a secured a professional lawyer and your case is prepared, trust your attorney to represent you well. You will be able to see how the trial is progressing, and you should be able to ask your legal professional any questions you may have. With the right legal representation and a good understanding of the mechanics of breach of contract litigation, your court battle could be surprisingly smooth.
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