A contract is a legally binding agreement that binds you and another party to specific obligations. If one or more parties renege on an agreement, there may be actual legal consequences. When one party breaches a contract, what are some concrete ways to reach a resolution?
What governs contract breaches?
Your complaint path will differ depending on the type of contract and amount of money involved in the agreement. Depending on how much, you will need to file your claim in either the local Magisterial District Court or the higher Court of Common Pleas.
Generally, you must file a claim within four years of the date the breach occurred or was discovered. In Pennsylvania, providing a formal notice to the other party is beneficial for your case. It solidifies your case and allows you to establish communications about your concern.
What are some solutions you can seek?
You have more than one legal pathway if you are facing a contract breach in Pennsylvania. Assess the broken terms of your contract and evaluate the type of compensation best fits your needs. Here are the major categories of remedies available:
- Monetary damages: The court awards you financial compensation for the losses you incurred due to the breach
- Contractual damages: When there is a specific provision in your contract regarding preset penalties for breaches, a court may order the other party to honor it
- Specific performance: In some cases, a court may order the breaching party to fulfill the obligations of their contract
- Rescission and restitution: If the court cannot calculate monetary damages or finds them inadequate, parties may need to return any benefits gained from the contract
Before initiating any legal action for contract disputes and breaches, seek out-of-court resolutions. Courts will often ask you if you have exhausted other remedies such as negotiations and mediation. Alternative dispute resolution, like arbitration, is usually much faster and easier than court processes.
Why should you seek support?
A legal team or professional can lend you critical information on your case. Your resolution process may go more smoothly with someone who can effectively protect your rights and provide a new perspective. Gathering records, examining contract clauses and calculating damages are just a few responsibilities of a law expert. You may want to seek a good representative to speak on your behalf.