Can I Sue for Breach of Contract? Business Considerations

Think you may have a breach of contract issue? Whether you are a business owner or individual, understanding contract law is crucial to protecting your rights and interests. This article explores what makes a contract valid, how to avoid void contracts, and when you can sue for breach of contract.

Our firm is a trusted resource to businesses in the Miami area, including business owners in the Russian-speaking and Romanian-speaking communities. We are well-versed in Florida contract law as well as federal trade regulations and international law.

What Is A Contract?

Formation of contract is a legally binding agreement between two or more parties that creates a legally enforceable obligation. A contract can be written or oral, but it is always best to have a written contract to avoid any misunderstandings.

For more background, you can also explore the American Bar Association’s guide on contract law.

The Elements Of A Contract

There are four essential elements that must be present for a contract to be valid:

1. Offer: One party must make an offer to the other party.
2. Acceptance: The other party must accept the offer.
3. Consideration: Each party must give something of value to the other party.
4. Intention to Create Legal Relations: Both parties must intend to create a legally binding contract.

Types Of Formation Of A Contract

There are many different types of formation of contract, but some of the most common types include:

• Bilateral Contracts: In a bilateral contract, both parties make promises to each other. For example, a contract for the sale of goods is a bilateral contract because the buyer promises to pay the seller for the goods, and the seller promises to deliver the goods to the buyer.
• Unilateral Contracts: In a unilateral contract, only one party makes a promise. For example, a contract to find a lost dog is a unilateral contract because the person who lost the dog promises to pay a reward to the person who finds the dog.
• Formal Contracts: Formal contracts must be in writing and signed by both parties to be valid. For example, contracts for the sale of land are formal contracts.
• Informal Contracts: Informal contracts do not have to be in writing to be valid. For example, a contract to buy a cup of coffee is an informal contract.

Void Contracts: What They Are And How To Avoid Them

If the subject matter of a contract is illegal, that contract is void from the start. Gambling contracts are absolutely void and unenforceable by reason of public policy. So too are contracts where one of the contracting parties exceeded its authority in entering into the pact, like where a township exceeds its statutory authority in entering into a contract, the township’s act is ultra vires and the resulting contract is void ab initio. A void contract is a contract that is not legally binding. This means that neither party to the contract has any legal rights or obligations under the contract. Void contracts are void ab initio, which means that they are void from the beginning. There are several reasons why a contract may be void. Some of the most common reasons include:

• Lack of capacity: One or both parties to the contract may not have the legal capacity to contract. For example, a minor (someone under the age of 18) cannot enter into a contract without the consent of their parent or guardian.
• Illegality: The contract may be for an illegal purpose. For example, a contract to commit a crime is void.
• Fraud: One party to the contract may have defrauded the other party. For example, if one party lies about the value of a property to sell it to the other party, the contract may be void.
• Coercion: One party to the contract may have coerced the other party into signing the contract. For example, if one party threatens to harm the other party if they do not sign the contract, the contract may be void.

If you are considering entering into a contract, it is important to have an attorney review the contract to make sure that it is valid. If you have signed a contract that you believe is void, you should contact an attorney to discuss your options.
Related resource: FindLaw: Void and Voidable Contracts.

Tips To Prevent Void Contracts

• Ensure that all parties have capacity to contract.
• Ensure that the contract is for a legal purpose.
• Read the contract carefully before signing it.
• Do not sign a contract if you do not understand it.
• Get an attorney to review the contract before you sign it.

By following these tips, you can help to avoid void contracts and protect your legal rights.

What Does An Experienced Contract Lawyer Do?

A contract lawyer can:

• Draft legally sound agreements.
• Negotiate favorable terms.
• Represent you in contract disputes or breach of contract lawsuits.

Hiring an experienced attorney ensures your contracts are enforceable and your rights are protected.

• They have a deep understanding of the law. Experienced lawyers have spent years studying and practicing the law. They know the ins and outs of the legal system and can use their knowledge to your advantage.
• They have the skills to negotiate effectively. Experienced lawyers are skilled negotiators who can get you the most favorable outcome in a settlement or trial.
• They have the resources to build a strong case. Experienced lawyers have access to a wide range of resources, including investigators, experts and other lawyers. They can use these resources to build a strong case that will help you win your case.
• They can provide you with peace of mind. Hiring an experienced lawyer can give you peace of mind knowing that you have someone who is fighting for your rights. You can focus on your case and let your lawyer handle the rest.

If you are entering a new business agreement or facing a breach of contract dispute, don’t wait. Protect your interests with the guidance of an experienced attorney.