What are the Legal Remedies for a Breach of Contract?
Contract disputes often arise between parties over various issues. A contract is a legally binding or enforceable agreement between two or more parties. Written and oral contracts form the basis of most business relationships, and both are enforceable in Georgia courts. When one party does not perform its obligations under a contract, the other party or parties can file a legal claim for breach of contract.
In order to be legally enforceable, all contracts must meet certain requirements.
- Mutual assent or agreement by all involved parties.
- The contract must cover all material or important terms.
- There must be adequate value to support the parties’ obligations under the contract.
- The subject matter of the contract must not violate the law.
- All parties must be competent and legally able to contract.
What is My Recourse for Breach of Contract?
Under Georgia law, there are three basic legal remedies for a claim of breach of contract: damages, rescission and specific performance.
Parties that suffer financial harm because of a breach of contract may possibly recover the following damages, which typically must be definite and documented, and not of a speculatory nature:
- Compensation for actual business losses
- Incidental damages for additional losses, such as lost revenue or income
- Attorneys’ fees and court costs
- Other liquidated damages established by the contract
Rescission means to “rescind” or cancel the contract. This is an option the offended parties can choose due to another party’s breach of contract. Georgia law typically seeks to restore all the innocent parties in the contract to their original position, as if the contract never existed. Their money can be returned and they may also recover damages.
Specific performance is when the offended party or parties attempt to use the power of the court to force the breaching party to fulfill its obligations under the contract. This is a typical course of action when damages would not adequately compensate the innocent party or parties for their losses.
Georgia Breach of Contract Lawyers
Georgia business disputes can involve contracts between partners, shareholders, employees, vendors, clients and other entities or individuals. Every contract is unique and disputes can be complex. Filing a claim for breach of contract requires the matter to go before the courts in most cases, and you need a seasoned team of attorneys to defend your rights and protect your interests.
Conley Griggs Partin, LLP works hard with professional diligence to pursue the best possible outcome for you in any legal matter pertaining to your business or private contracts. Contact one of our offices to schedule a confidential consultation regarding your breach of contract claim.
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