Vaziri Law LLC has extensive experience in business law throughout Chicago representing breach of contract claims. If your business has sustained losses due to another party’s failure to fulfill its contractual obligations, we will help you explore all the legal remedies available to you.
Given the challenges of prevailing in a breach of contract claim, it is crucial to have the competent representation we provide. Our legal team will help you seek to enforce the contract and/or recover damages or other relief you may be entitled to.
While contract disputes can often be resolved through negotiations, we are fully prepared to litigate to achieve the best possible outcome. Above all, we will work strategically to protect your interests, in and out of the courtroom. Contact our office today to schedule your initial consultation with our business law attorney.
Defining Breach of Contract in Chicago Business Law
The first thing to know is that a contract is a legally enforceable agreement between two (or more) parties. Also, a contract is created when there is an:
- Offer by one party
- Acceptance of the offer by another party
- Exchange of consideration (something of value) between the parties
The consideration typically involves money in exchange for goods or services. In short, a breach arises when one party to a contract fails to fulfill its obligations to the other party. Moreover, an agreement can be breached in several ways, and not all breaches are treated the same under the law. Examples of the types of breach of contract include:
Minor Breach
A minor breach arises when one party fails to perform a part of the contract but does not breach a material term. To be considered minor, the breach must not prevent the parties from fulfilling their remaining obligations under the contract. A minor breach is inconvenient and annoying, but may not entitle the injured party to sue for damages or the damages are so minor that a lawsuit is impractical.
Material Breach
A material breach is a serious violation that (1) adversely affects the parties to the extent that their obligations can no longer be fulfilled and (2) undermines the contract as a whole. In this situation, the non-breaching party is permitted to stop performing its obligations and may sue for damages.
Anticipatory Breach
An anticipatory breach arises when one party under the contract indicates, either through words or actions, that it will not fulfill its obligations to the other party. In the event of an anticipatory breach, the non-breaching party should avoid incurring additional expenses to mitigate its damages. By failing to do so, the non-breaching party may not be able to recover any additionally incurred damages.
Business Law Bad Faith
Businesses that enter into agreements have an implied duty to act honestly, fairly, and in good faith. A party to a contract that fails to do so can be sued for breach of the implied duty of good faith and fair dealing. This differs from breach of contract, which involves one party’s failure to uphold a specific requirement of the agreement. By contrast, bad faith is not a violation of any provision of the contract, but the intent of the agreement itself; bad faith claims are a frequent basis for insurance litigation.
Regardless of the type of breach, the best way to protect your rights is to consult with an experienced Chicago business law attorney. At Vaziri Law LLC, we have a proven history of resolving contract disputes through negotiation and litigation and will work to help you achieve a positive outcome.
Do I Have a Valid Chicago Breach of Contract Claim?
To have a valid breach of contract claim, a plaintiff must be able to prove:
- The existence of a valid and enforceable contract between the parties
- The material performance of its contractual obligations
- The other party’s failure to materially perform its obligations under the contract
- Actual damages (e.g. monetary loss) directly resulting from the other party’s breach
Trust Vaziri Law LLC to demonstrate the elements of breach of contract, work to enforce the agreement, and protect your interests.
Damages and Other Remedies for Breach of Contract in Business Law
Depending on the circumstances, the types of damages that may be awarded in a Chicago breach of contract claim include:
- Compensatory damages — designed to restore the non-breaching party to the same financial position it would have been had the breach not occurred.
- Consequential damages — intended to compensate the non-breaching party for future losses that were reasonably foreseeable as a result of the breach. For example, the court may award reimbursement for lost business.
- Liquidated damages — contracts often include provisions for liquidated damages where it may be difficult to quantify damages in the event of a breach.
In addition, other remedies for breach of contract that may be available include:
- Specific performance — The court orders the breaching party to fulfill and perform its contractual obligations. Specific performance is typically awarded when money cannot sufficiently compensate the injured party and the value of the obligation is difficult to determine.
- Rescission — The court invalidates the contract and returns the parties to the position they were in prior to signing the agreement. Rescission is only typically granted when the non-breaching party has no other adequate remedy, but cannot obtain damages.
Helping Chicago Businesses Resolve Breach of Contract Claims.
At Vaziri Law LLC, we have a proven history of achieving positive outcomes in breach of contract claims and will help you recover the damages and relief you deserve. On the other hand, if your business is facing a breach of contract claim or anticipates a breach, we can help to amicably resolve the dispute or defend your interests in court. The sooner you contact our office, the sooner we can start working on your claim.
Vaziri Law helps residents of Chicago with their breach of contract situations, including those who live in Cook County, Dupage County, Lake County, McHenry County, and Will County.