Contract Breach Lawyer in Auckland

Explaining a Breach Of Contract

Elyse Moore
Elyse Moore

A contract is a legal document that binds to parties to a legally enforceable agreement. The obligations of each party is laid out in the contract; one party may be committed to paying a certain price and the other to providing a particular service or product. If one party fulfils their legally binding duties even though the other party has been negligent in their commitment, the first party will be entitled to legal relief.

Breach of contract is the term for failure to fulfil the promises or commitments specified in the contract. Contracts can be breached in the following ways:

  • One party does not fulfill their duties as specified in the contract.
  • One party orchestrates an action to make it impossible for the other party to fulfil their duties.
  • One party makes it understood that they do not intend to uphold their side of the contract.

Written Contracts and Oral Contracts

Generally speaking both oral and written forms of contracts are legally enforceable, however it is always a better idea to have the details of the contract printed on paper to settle any disputes that may arise in the future. When it comes time to dispute oral contracts both parties can remember different versions of what was said and understood from the agreement.

Breach of Contract Damages Award

When a contract is breached the party that has fulfilled the terms of the contract is entitled to a number of remedies for the breach of contract. The most common form of remedy provided for the party that fulfilled their duty is awarding damages. This damages award is to compensate the party for any expenses related to the breach of contract. Damages awards may include:

Consequential Damages -This award demands that the breaching party compensate the non-breaching party in the amount they would have gained if the contract had been fulfilled as planned.

Punitive Damages- Courts can force a party to pay an amount as a penalty for breaching the contract.

Liquidated Damages – Both parties agree when the contract is signed that if either party breaches the contract they must pay the non-breaching party a specified amount of money. The details and amounts are agreed upon at the time of the signing.

Nominal Damages – This minimal amount of compensation is granted to the non-breaching party if they win the case but do not financially lose anything.

Breach of Contract Equitable Remedy

In certain claims of breach of contract, damages awards are not applicable by law or are inappropriate in some other way. In these situations, a court may respond by ordering one of the parties to take remedial actions to resolve the dispute. These are called “Equitable Remedies” and can include.

  • Specific Performance – This when the court requires a certain party to perform their duties as outlined in the contract. This is not always afforded by a court.
  • Rescission – This when a court revokes the contract or acts as if it never existed. In this case, neither party will be required to fulfil their required duties. If one of the parties has performed their duties then the court does its best to restore this party to the position they were at before the contract.

Time Limit for Filing a Breach of Contract

The time limit, known as a statute of limitations, varies depending on when the breach occurred but in general must be within six years. This is the time period in which people can file a lawsuit for a breach of contract. If a party hopes to be compensated for a breach and seeks remedy awards they must file their case within this time frame or their case will be dismissed. The statute of limitations varies from state to state.

Breach of Contract Lawyers

Contract law is complicated affair. Consulting a reliable business lawyer can help you to identify the particulars of defining breach of contract and how you can be best prepared for such a situation. Furthermore, a qualified lawyer can help you to look at a contract from a legal perspective help you negotiate the terms and advise you against potential problems. Having a local contract lawyer in Auckland to advise you with the original signing of a contract can provide a measure of security against future disputes.

However, if something does go wrong then you need to meet your lawyer for breaching of a contract to resolve the dispute. In central Auckland, McVeagh Fleming has a large specialist team who can give you some help. Contact them via their website and they will be able to give you definitive advice on your case.