A contract dispute harms the interests of both parties to the contract and can even harm the interests of a third party. That is why it is important to resolve a contract dispute as soon as possible. However, parties to the contract may not always agree on how to resolve a dispute. If your business is involved in a contract dispute, contact an experienced Towson contract dispute attorney today.
The Heyman Law Firm understands how a serious contract dispute can disrupt a business, and we are here to help you resolve your contract claim. To schedule a confidential legal consultation to discuss your legal situation, contact the Heyman Law Firm at (410) 305-9287. You may also use our online submission form to contact the firm.
3 Common Contract Dispute Claims in Towson, MD
A contract is a legal agreement between two or more parties to exchange services, promises for performance, or compensation for a service. There are various reasons that a contract dispute may arise between the parties of the contract. For example, if a contract is ambiguous regarding when a party should deliver goods contracted for, the parties may disagree as to when the goods should be delivered.
The following is a list of other common types of contract disputes that may arise between the parties to a contract.
Breach of Contract
A breach of contract occurs when a party fails to fulfill the obligations they agreed to perform in the contract. Many contracts will have provisions that dictate what will occur when a party fails to perform under the contract. However, whether a contract details this remedy or not, breach of contract claims can be challenging to resolve.
For example, the breaching party can argue that they had a valid reason that prevented them from completing the contract. As a result, a court may have to examine various factors of a contract dispute claim before they can make a determination about who breached the contract.
Breach of contract claims is likely the most common type of contract dispute because it can occur in a variety of circumstances. For example, if a former employee of a business leaked confidential information to their new employer, this would trigger a breach of contract claim if they signed a non-disclosure agreement (NDA) with their former employer.
Material Misrepresentation
When executing a contract, it is vital that each party is apprised of all material information regarding their agreement. For example, if a buyer contracted to purchase a building to use as the headquarters for his business, the buyer would want to ensure that the building is structurally sound. However, if the seller discloses that the building has a small ant problem but neglects to mention a serious termite infestation, this is a material misrepresentation that will harm the buyer.
If a party to a contract can prove that a seller misrepresented important information, they may be able to secure damages or even a rescission of the contract.
Enforceability of a Contract
The enforceability of a contract that often arises when a party to a contract challenges how a contract was executed. Many contracts executed between parties are subject to the Statute of Frauds.
The Statute of Frauds is a law that requires that a contract must be in writing and signed by the party against whom it is enforced in order to be legally enforceable. Under the laws of Maryland, the following contracts must meet the requirements of the Statute of Frauds to be enforceable in Towson:
- Contracts made for the sale of goods over $500
- Sales of real estate or an interest in land
- Promises made in consideration of marriage (e.g., prenuptial agreements)
- The lease of land for a period lasting more than a year
- Contracts for services that will take longer than a year to perform
- Contracts made by the personal representative of a decedent to pay off the decedent’s debts
- Suretyship contracts where one party takes responsibility for the debt of another party
To learn more about how to decrease the likelihood of a contract dispute, you should continue reading and speak with an experienced Towson, MD contract dispute lawyer.
Contracting Errors that Can Cause a Dispute for Towson Businesses
When two parties wish to execute a contract, they will take time to set out the terms of the agreement. However, there could be essential provisions that a party to a contract may forget to include in a contract, which can lead to a dispute.
As mentioned, many contract disputes begin because the contract is ambiguous regarding certain details. Ensuring that a contract is clear regarding all terms is necessary to avoid unnecessary disputes. This is especially true if a contract uses complex terms of art regarding the obligations of each party. Our firm can work with you to draft a contract where each party is not confused regarding their obligations in the contract.
Failing to put a contract in writing is another common reason that can cause a dispute. When this occurs, the parties will only have oral and circumstantial evidence that can help prove the existence of a contract.
If you are concerned about drafting a thorough contract for use in your business, our firm can help guide you through the process.
Contact Our Experienced Towson Contract Dispute Attorneys to Discuss Your Claim
Do not allow a contract dispute to severely harm your business, consult with an experienced Towson contract dispute lawyer to determine how to handle your case. The dedicated business lawyers at the Heyman Law Firm possess extensive experience litigating contract disputes, and we would be pleased to help resolve your contract dispute. To schedule a confidential case evaluation, contact the Heyman Law Firm at (410) 305-9287.