If someone has violated the terms of an agreement you both entered into, you may have grounds to file a lawsuit for breach of contract. Here’s what you need to know about your rights and the steps to take:
1. Determine If There Was a Valid Contract
To sue for breach of contract, you must first establish that a valid contract existed. A legally binding contract typically includes:
- Offer and Acceptance – One party makes an offer, and the other accepts it.
- Consideration – Something of value must be exchanged (e.g., money, services, goods).
- Mutual Agreement – Both parties must understand and agree to the terms.
- Legal Purpose – The contract must not involve illegal activities.
2. Identify the Breach
A breach occurs when one party fails to fulfill their obligations under the contract. There are three types of breaches:
- Material Breach – A significant violation that impacts the contract's purpose.
- Minor Breach – A smaller violation that does not significantly affect the agreement.
- Anticipatory Breach – When one party clearly states they will not fulfill their obligations.
3. Gather Evidence
Before filing a lawsuit, collect all necessary documentation, including:
- The written contract (if available)
- Emails, messages, or correspondence regarding the agreement
- Proof of performance (such as receipts, invoices, or records of communication)
- Witness statements, if applicable
4. Attempt to Resolve the Issue
In many cases, courts prefer that parties try to resolve disputes before litigation. You can:
- Send a Demand Letter – A formal letter requesting the breaching party to fulfill their obligations or compensate for damages.
- Negotiate a Settlement – Mediation or arbitration can help both parties reach an agreement without going to court.
5. File a Lawsuit
If informal resolution fails, you can proceed with legal action:
- Choose the Right Court – Small claims court is suitable for minor breaches, while larger disputes may require civil court.
- Draft a Complaint – This legal document outlines the breach, evidence, and damages you seek.
- Serve the Defendant – The accused party must be formally notified of the lawsuit.
6. Prove Your Case in Court
To win a breach of contract case, you must prove:
- A valid contract existed.
- The other party failed to fulfill their obligations.
- You suffered financial or other damages due to the breach.
- You attempted to mitigate the damages.
7. Seek Damages
If successful, you may receive compensation in the form of:
- Compensatory Damages – To cover financial losses caused by the breach.
- Punitive Damages – If the breach was intentional or fraudulent.
- Specific Performance – A court order requiring the breaching party to fulfill their obligations.
