How Long Should You Wait Before Filing a Breach of Contract Lawsuit in Maryland?

Time is of the essence when filing a claim for breach of contract. A non-breaching party’s best chance at receiving compensation for any harm suffered is to utilize the remedies that the legal system provides. One would think that the natural reaction upon discovering that your contract has been breached would be to immediately retain an attorney. Nevertheless, there are still some people who insist on using “self-help” methods to try and solve their contractual disputes. This method of recovery often leaves people fruitless and disappointed.

A skilled Maryland contract dispute attorney can provide you with the sound guidance you need to seek just compensation after suffering losses due to a breach of contract. The breach of contract attorneys at the Heyman Law Firm provide high quality legal services and can develop a game plan to help you recover your losses efficiently and effectively.

Elements of a Breach of Contract

There are nuanced provisions and differences in every contract. Some contain mostly boilerplate language, while others are crafted and fine-tuned strictly by the parties who signed them. No matter what the contract is for or what the specific terms entail, every contract must contain four essential elements. In order to be considered legally binding, a contract must contain these four elements:

1. Offer
2. Acceptance
3. Consideration
4. Mutual assent

An offer is a promise by one party to act or refrain from acting. Offers are binding upon acceptance. When the non-promising party unequivocally agrees to the terms of an offer, acceptance has commenced. When the non-promising party accepts the offer, a contract is formed. Consideration is the benefit each party receives by entering into a contractual agreement. In order for a contract to be legally binding, mutual assent must have existed, i.e. the parties intended to enter into a contract.

What Constitutes a Breach of Contract?

There are numerous ways in which a contract can be breached based on what the specific terms of the agreement are. However, generally speaking, there are three categories of performance that respectively constitute a breach:

1. A party fails to perform as promised
2. A party makes it impossible for another party to perform
3. A party declares that he or she has an intent not to perform (repudiation of the contract)

Unless there is express language in the contract to the contrary, any deviation from the terms and obligations in a contract will only be considered a breach if it is material. A material breach occurs when a party to a contract fails to perform a substantial part of the contract.

Maryland Statute of Limitations for Breach of Contract Causes of Action

In Maryland, a breach of contract cause of action has a three-year statute of limitations. This applies to both oral and written contracts. This means that in a suit for breach of contract, a non-breaching party has three years from the date of the breach to file a claim in a court of law. Contracts under seal have a twelve-year statute of limitations.

There is obviously a significant difference between three years and twelve years especially when money is at stake, and therefore, it is important for people to understand the definition of a contract under seal. Contracts under seal are considered “specialty” contracts. The Court in Rouse-Teachers Properties, Inc. v. Maryland Casualty Company, distinguished contracts under seal from ordinary contracts. In this case, the Court held that in order for a contract to be under seal, there must be express language conveying the intent of the parties to create a sealed instrument. Contractual clauses containing statements such as “witness my hand and seal” or “signed and sealed” are sufficient phrases to make a document sealed for statute of limitation purposes.

Sometimes, courts will look to extrinsic evidence to ascertain whether a document was intended to be sealed. The Court in Rouse-Teachers concluded that when a corporate seal is attached to a document but its purpose is unclear, a court will allow extrinsic evidence to be admitted. Thus, extrinsic evidence will be used to determine if the attachment of the corporate seal demonstrated intent to create a specialty.

Maryland Breach of Contract Attorney

If you are a party to a contract that has been breached, it is imperative that you explore all of legal options with the help of a Maryland business advisory attorney. Three years can fly by, and it is easy to let an opportunity to pursue legal action go by the wayside when you are trying to recover from losses incurred by a breach. Retaining a competent and skilled Columbia breach of contract attorney is a crucial step that you must take in order to receive compensation for the harm you have suffered.

The contractual litigation attorneys at the Heyman Law Firm are here to help. Our attorneys pride themselves in providing legal services with professionalism and tenacity to achieve positive results for their clients. Call the Heyman Law Firm at (410) 305-9287 and schedule a confidential consultation with an experienced Baltimore business litigation attorney today.