One of the most common forms of business litigation is the contract dispute. Contracts are entered into for many different reasons in the business world, from equipment purchase and rental, distribution contracts, franchises, construction jobs, employment agreements, partnerships, and much more.
Breach of contract disputes can occur between companies, with government agencies, or among individuals. Such a dispute may result in substantial losses, severe damage to a company’s reputation as well as in the loss of long-standing clients.
The experienced New Orleans Business Lawyers at Barrios, Kingsdorf & Casteix can help protect your company from any of these unfortunate consequences.
A material breach of contract, sometimes called a “total breach,” is the failure of one party to adhere to the fundamental purpose of the contract in such a way that the purpose is “irreparably broken.” A non-material breach is when one party breaks a minor element of the contract.
Here is a simplified example of what a material vs. non-material breach might look like:
You hire an electrician to specifically install new, high-grade wiring in your home for the purpose of protecting your home from electrical failures and damages. To save money, the electrician instead installs lower-quality wiring which does not work as well and ends up causing damage to your home. In this case, the breach may be considered material because the installation contract was for a specific high-quality wiring to protect your home, and the contractor failed in that goal.
However, if you hire an electrician to rewire your home and ask for purple wiring, but he instead uses blue wiring that performs just as well as the purple and is not visible because it’s inside the walls. While this could still be considered a breach, it would be a non-material one because the outcome of the contract is not altered — you have new wiring that works as you wanted it too.
If you’ve suffered damages from a breach of contract, whether material or not, you can still pursue legal action against the other party.
When another party fails to hold up their end of a contract, your business is likely to suffer the consequences in many ways. We can help you seek:
Our experienced litigators will perform a thorough analysis of your case and offer creative, cost-effective solutions depending on your circumstances.
The expense of litigation a breach of contract lawsuit in court can, in some cases, exceed the losses from the contract dispute itself. Before a case goes to trial, will attempt to settle the dispute through mediation and arbitration. We can help you work out settlements with the opposing party while taking into consideration legally binding factors such as property or liability insurance, regulations and tax implications.
For more information about commercial and business litigation, contact a business attorney at Barrios, Kingsdorf & Casteix today for assistance.