The first step in bringing a breach of contract lawsuit against your contractor is to determine if the alleged breach satisfies as at least a material breach. It implies that a jury or a court might find that the contract has been dissolved or terminated if there has been a serious enough breach of duty on the part of the parties involved. Contact a Clearwater business litigation lawyer to find out more regarding the differences between material and non-material breaches and to learn about the associated legal repercussions.
What do you mean by Material and Non-material breach of contract?
The very first thing to do is to determine whether the breach is serious. A breach is considered major when it is significant enough to jeopardize the main objective of the contract. In basic terms, the violation damages the “heart” of the contract to such a degree that it cannot be restored.
If a judge decides there has been a material breach, they will consider the following factors:
- How much could you, the damaged party, still gain from the contract and
- Whether the available damages will adequately make up for the breach.
What legal consequences might a material breach possess?
Remember that every contract is different. On the other hand, you might be legally excused from completing your responsibilities if your contractor materially violates the conditions of the contract. As an example, you could choose not to pay the contractor until the violation is corrected. You can even end the contract completely in certain circumstances.
Non-material breach
Non-material breaches are minimal and have no impact on the nature of the agreement. Let us take an example where you had a contractor install red wiring in your residence. Instead, the contractors installed black cables. The quality of the black and red wires is the same, too. Furthermore, because the cables are hidden behind a wall, they are undetectable after installation. The project’s outcome stays the same; thus, although there has been a breach, it cannot be considered to be a significant one.
Can a Non-Material Breach Have Legal Consequences?
Yes. Even in situations of minor breaches, you are still obligated to fulfill your side of the agreement. But you could also be able to get reimbursed for damages caused by the breach of contract.
Remedies for Contract Breach
In most cases, you can get monetary reimbursement if there is a breach. These are usually actual damages aimed at bringing your situation to what it would have been within the terms of the contract.