As a small business, contracts are a part of daily life. Hiring employees, working with vendors, and renting equipment all require contracts. But what happens when a vendor doesn’t follow through? What if an employee doesn’t fulfill their job requirements? When there’s a breach of contract, Jeff First, an expert breach of contract lawyer Philadelphia trusts, is here to provide legal assistance for your small business.
How do I know if there’s been a breach of contract?
A breach of contract occurs when there is a failure to fulfill any action that is promised in the contract, without a lawful excuse. There are four different types of breaches:
- Minor Breach: This is also known as a partial or immaterial breach of contract. In this instance, the majority of the contract was upheld. Perhaps a vendor completed their job, but did so in a manner that was not up to your standards. With a minor breach of contract, you can only sue for actual damages.
- Material: A material breach is considered by some to be the most serious of the four types of breach. If you completed a job and the client did not pay you, it’s considered a material breach and you may sue to seek damages.
- Fundamental: This is also known as a repudiatory breach. When this breach occurs, it is because the party in breach has failed to fulfill the terms of the contract in a way that renders the contract useless. In this case, you may sue for damages as well as termination of the contract.
- Anticipatory: In an anticipatory breach, you may sue for damages and contract termination before the fact when it becomes evident the contract terms cannot be fulfilled. If a vendor hasn’t started work on a 6-week project a week before it’s due, it’s an anticipatory breach.
What happens after a breach of contract?
There are a few courses of action you can take to remedy a breach of contract:
- Check the contract: Have a lawyer specializing in breach of contract litigation review the original contract to see if there are any remedies within the document.
- File a claim with the district court. If you’re seeking damages up to $8,000 throughout Pennsylvania or up to $12,000 in Philadelphia, a breach of contract lawyer can assist you in filing suit through district court.
- Appeal judgement to the Court of Common Pleas.
Appeals may be taken from District Court to the Court of Common Pleas. Where appropriate, lawsuits can be filed in the first instance in the Court of Common Pleas.
To learn more about our services and about breach of contract, call our office at 215-307-3939 to speak with our Philadelphia lawyers.