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How to prove a breach of contract

Breach of contract is one of the most common disputes businesses face. This can occur when a vendor, business partner or customer does not fulfill the terms of an agreement. Ideally, the two sides or stakeholders can resolve the matter through negotiation or arbitration as outlined in the agreement. Even before litigating the issue in court, it is helpful to outline the contract breach and ways to resolve the matter.

4 elements to building a case

The consequences of a breach can be quite severe and costly to a business, so it is essential to build a case that induces them to rectify the matter. Here are some critical building blocks for proving the breach.

A binding legal agreement: Contacts are the legal foundation for every serious business relationship. They outline the agreement’s details, including deadlines, pay, length, and scope of the contract. It must also be established as binding under the law, which generally involves fair and realistic terms.

Meeting the conditions: This involves proving that one side did execute its obligations outlined in the contract. By completing the terms of the agreement, a business is entitled to enforce it.

Proving their non-performance: This involves establishing a material breach and its impact upon the plaintiff because of the contract breach.

Proving damages: The plaintiff needs to prove loss of income or financial damage. While it is more complicated, the plaintiff may also claim damage to their reputation because they could not meet agreements with others due to the breach.

Protecting business interests is essential

If none of these points supported by proof convinces the other party to meet the conditions of the agreement, the plaintiff can file a lawsuit. They will then present their case to the court, who then can rule on the matter. While enforcing contracts and filing lawsuits take time and money in the short term, it shows others that the plaintiff is willing to protect their business interests to the full extent of the law, which may dissuade others from testing the company in the future.