How to Sue for Breach of Contract

According to recent statistics, more than 30% of cases that go to court for breach of contract are thrown out by the courts for a variety of reasons. Often, when people sign a business agreement, they don’t realize what they are signing or what types of contracts will be enforced by law. Before you attempt to sue a person or business for breach of contract, educate yourself on contract law and be sure you understand what you have signed away.

In order for a breach of contract case to be declared valid, it must follow a stringent set of guidelines. If you feel that the person with which you signed the contract is in breach, first ask yourself these questions to determine if you have a case.

1. Is the agreement a contract?

In order for an agreement to be considered a contract, one party must agree to give another something else in exchange for a promise. For example, let’s say that you’ve hired a web designer to prepare your website. In the contract, it should state that you will be paying the web designer “x” amount of money in exchange for a website. It is considered a contract because you’ve agreed to remit payment on the promise that the web designer will prepare your website.

The agreement must be signed by both parties in order for the contract to be valid, and in some instances, the contract must be dated as well. The provisions of the contract must be both�¯�¿�½legible and clear, and there must be clearly defined methods of both service and payment. Otherwise, it will not be subject to breach of contract laws.

2. Is the contract enforceable?

Even if the court determines that a contract exists, the contract may still not be enforceable by law, which means that breach of contract is not even an�¯�¿�½issue.�¯�¿�½There are various contract defenses that can be invoked by the defendant that will render the contract void. An obvious and unfair slant in a contract is one defense; this means that it is obvious that one party is getting more than he or she should, which might indicate that the contract was signed under duress.

3. Did both parties have capacity to contract?

Capacity is another contract defense that will arise if one or both parties is mentally impaired, underage or otherwise exempt from the ability to make a contract. Any contract signed or initiated by someone who lacks capacity will be voided immediately. In order for capacity to come into play, the defendant must prove that he or she lacks capacity to sign a contract, and therefore is not in breach of the contract. A minor cannot sign a contract.

4. Was either of the parties intoxicated?

Although this is not a typically substantial defense, if the defendant was somehow forced into intoxication, or if the plaintiff knew that the defendant was intoxicated, then the courts might not declare breach of contract, and can then render the contract void. This is not a defense to count on, however, and should only be invoked if unfairness is an issue.

5. Did either party sign the contract under duress?

Duress is an instance in which one party threatened the other with illegal actions in order to elicit the signing of the contract.�¯�¿�½ Blackmail is one example of signing a contract under duress, as is the threat of bodily harm or the harm of a relative or loved one. Contracts signed under duress are not subject to breach of contract laws.

6. Can the defendant claim undue influence?

When a contract is signed by two parties, and one party has a certain amount of influence over the other, undue influence can be claimed to avoid breach laws. For example, if a nineteen year old girl is told to sign a contract by an overbearing uncle, she can claim undue influence because she had reason to believe that the�¯�¿�½uncle might do something to hurt her or her family.�¯�¿�½

7. Was there any act of misrepresentation involved?

Misrepresentation can be claimed by the defendantÃ?¯Ã?¿Ã?½in a breach of contract case if the other party lied or deliberately left out pertinent information. For example, a contract binding the sale of an item from one person to another may be voided by a court if it is found that the item delivered was not the item advertised. This is happening more and more often with online auction sales. If you purchase an item that is advertised as “like new,” when the item you receive shows obvious signs of wear, the contract might be voided by a court.

8. Is the contract unconscionable?

This is another contract defense that is really up to the courts to decide, and is not often won. If the courts find that a contract unreasonably favors one party or the other, they have the right to void the contract as unconscionable. Excessive pricing is one possibility, though the defendant must prove that he or she was either unable to question the contract or was illiterate at the time of the signing.�¯�¿�½

Breach of contract cases are difficult to prove, but if you have a solid contract that is enforceable by law, then you have a right to recoup your losses.