Contracts are at the heart of thousands of business disputes each year. In many contract disputes, both sides think they are in the right and that their conduct fulfills their end of the bargain. This often makes negotiations difficult. Tensions can run high, especially if both sides already invested substantial funding into negotiating the contract with the intent of protecting their business interests.
If you or your business is involved in a contract dispute, it is important to talk to an attorney about your case. Even if you believe the dispute is resolved, you may have continued performance requirements under the contract, a duty to mitigate damages, or other options to continue exercising your rights under the agreement. If you do business in the Baltimore area, talk to Baltimore contract dispute lawyer William S. Heyman about your case. Mr. Heyman offers free consultations on new cases to help you understand how his more than 20 years of experience handling business litigation and contract disputes can help in your case. Call (410) 305-9287 today.
Modifying or Breaking a Contract in MD
Many contract disputes become serious legal disputes when one side accuses the other of breaching the contract. Alternatively, one side may demand that the other perform under the terms of the contract or else it will cease to perform. In many disputes, both sides may feel like their backs are against the wall and that they need to do something. Two of the most obvious options each side has are to comply with the terms or break the contract – but there are other remedies available in court.
Compliance may not always be possible. Sometimes, due to circumstances, it may no longer be possible to perform. Or, performance may not be as beneficial as you thought when the contract was formed and then the risks of ceasing performance – including potential litigation brought by the other side – need to be evaluated. At times, performance may be the most reasonable business option.
Alternatively, you have the option to breach the contract. Breaching a contract may come with damages you need to pay to reimburse the other party/parties for financial harm they suffer, or the contract may include liquidated damages you already agreed to pay in the event of a breach. Breaching a contract may require paying damages, but it may ultimately be the fastest and cheapest way for either side to resolve the dispute.
Contract cases often have other remedies beyond paying damages for breach, and many contract disputes can be resolved by having the parties come together to renegotiate terms or having a judge step in. In some cases, you may be able to sit down with the other side and renegotiate terms of the contract. If the contract is worth saving and benefits both sides, it may not be worth burning bridges and taking each other to court. Parties can always agree to set aside a contract or form a new one if they want.
In some cases, the courts will order the contract to be set aside or change its terms. If the contract was formed based on mistakes or fraud, courts may use the “rescission” remedy to set the contract aside. If there were serious issues with the contract at the time it was created, the court may later modify the terms through “reformation.” This can help in situations where compliance seems impossible or would cause serious harm. Because courts are extremely unwilling to re-write contracts, this remedy is rare.
Damages for Breaching a Contract in Baltimore
If the dispute ends in breach, you may be entitled to claim (or may be required to pay) certain damages. Many contracts, especially for sales or services, have specific prices attached. In these cases, the damages are often based directly off those figures. If a buyer already paid the money but did not receive the goods, the damages will be the purchase price. If a contractor was paid but completed only 50 percent of the work on a project, the damages will be 50 percent of the price paid plus potentially consequential damages caused by the breach.
Other contract disputes have more complicated damages. If you were under time constraints, and the other party knew about your constraints, you may have no choice but to purchase replacement goods or pay another contractor to complete the project. If you ended up paying more for the replacement goods/services, the breaching party may be required to pay you back for your additional expenses.
Other damages may be difficult to calculate, or their prices might change drastically between the time the contract is formed and when it is breached. In these cases, the contract might specify “liquidated damages” that the breaching party will pay, simplifying much of the work during a contract dispute.
There are other consequential and general damages you may be able to claim during a breach of contract case. Talk to an attorney about the specifics of your case to understand what damages you may apply in your breach of contract case.
Baltimore Attorney Offering Help in Resolving Contract Dispute Cases
If your business is suffering under a problematic contract or you are having trouble getting the other party to pay or perform, talk to a lawyer about your case today. William S. Heyman of the Heyman Law Firm represents businesses and individuals in breach of contract cases and contract disputes. For a consultation on the legal services we can offer in your case, call us today at (410) 305-9287.