Claim Breach of Contract

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

When a contract is breached, the legal consequences can be severe. Breach of contract is a serious issue because it involves failure to meet contractual obligations and can have significant financial and legal implications. To protect against such breaches, the non-breaching party has the right to take legal action to enforce their rights and seek remedies. These could include money damages, specific performance or an injunction - and in some cases, punitive damages too. The Genie AI team understands that breach of contract matters because it’s essential for protecting people’s legal rights.

Furthermore, if the breach is material there could be a claim for breaching good faith and fair dealing - which may also lead to a claim for breach of fiduciary duty if one party is a fiduciary. This emphasizes why parties need to be aware of their rights in potential breaches of contract as well as being aware of its potentially damaging consequences.

At Genie AI we understand the importance of contract law in protecting individuals’ legal rights, which is why we have created our library; ‘the world’s largest open source template library’. Our millions-strong dataset allows users access to market-standard breach of contracts without paying expensive lawyer fees or having any prior expertise in this field. So you can draft your own high quality documents with ease!

We believe that everyone should have access to reliable resources when it comes to breaches of contracts - so if you’re looking for step-by-step guidance on drafting your own documents or would like more information on how you can access our template library today without needing a Genie AI account - simply read on below!

Definitions (feel free to skip)

Statutes: Laws passed by a legislature that set out rules and regulations for a certain subject.
Common Law Principles: Rules and regulations that are established by judges and courts over time, rather than by a legislature.
Remedies: A form of relief from a court, such as money or a court order to do something, which is available to someone who has been wronged.
Specific Performance: A legal remedy that requires a breaching party to perform their obligations under the contract.
Injunction: A court order to do or not do something.
Material Breach: A breach of contract that significantly affects the value of the contract to the non-breaching party.
Non-Material Breach: A breach of contract that does not significantly affect the value of the contract to the non-breaching party.
Statute of Limitations: A law that sets a time limit on when an action can be taken to enforce a legal right.

Contents

• Understanding the basics of breach of contract law and remedies
• Researching relevant statutes and common law principles
• Learning about the remedies available for breach of contract
• Determining the intent of the parties at the time of contracting
• Examining the contractual language
• Analyzing any pre-contractual negotiations
• Assessing the nature of the breach
• Analyzing the language of the contract to determine the breach
• Identifying the type of breach and its potential consequences
• Deciding if the breach is material or non-material
• Understanding the legal definition of material breach
• Analyzing the consequences of the breach to determine if it is material
• Identifying possible remedies for the breach of contract
• Recognizing the available remedies, including specific performance and damages
• Assessing which remedy is most appropriate for the breach
• Determining the statute of limitations for the breach
• Locating the applicable state or federal statute of limitations
• Calculating the applicable time period for filing a lawsuit
• Gathering evidence to prove the breach
• Collecting relevant documents and other evidence
• Interviewing witnesses to determine what occurred
• Drafting a notice of breach of contract
• Outlining the facts of the breach
• Demanding the appropriate remedy
• Taking legal action in court to recover damages
• Filing a complaint in court
• Serving the complaint on the other party
• Negotiating an out-of-court settlement
• Contacting the other party to discuss a possible settlement
• Drafting a proposed settlement agreement

Get started

Understanding the basics of breach of contract law and remedies

• Read up on the basics of breach of contract law, including common terms, defenses, remedies, and other elements of a breach of contract claim
• Understand the elements of a breach of contract claim, including the contractual terms that were breached, the party’s performance and damages resulting from the breach
• Research the relevant statutes and common law principles related to breach of contract claims
• Learn about the potential remedies available in breach of contract cases
• When you have a clear understanding of the basics of breach of contract law and remedies, you can check this off your list and move on to the next step.

Researching relevant statutes and common law principles

• Research state and federal statutes and case law related to breach of contract
• Read through relevant statutes and common law principles to determine which ones apply to the dispute
• Note down any pertinent information from the statutes and common law principles you find
• When you’ve read through the relevant statutes and common law principles, you’ll have a better understanding of the legal principles that apply to your dispute

When you’ve read through the relevant statutes and common law principles, you can move on to the next step, learning about the remedies available for breach of contract.

Learning about the remedies available for breach of contract

• Read applicable state and federal laws regarding breach of contract
• Review any prior cases of breach of contract in similar circumstances
• Consult with an attorney to understand which remedies are available for breach of contract
• Take note of which remedies could be applicable for your situation

Once you have a good understanding of the available remedies for breach of contract, you can move on to the next step of determining the intent of the parties at the time of contracting.

Determining the intent of the parties at the time of contracting

• Review the contract to look for any language that indicates the intentions of the parties
• Consider the context of the contract and the circumstances that existed when it was created
• Examine any communications between the parties leading up to the agreement
• Assess the industry standards that may have been applicable to the contract
• Analyze any prior agreements between the parties

Once you’ve completed your review, you can be confident that you have a clear understanding of the intent of the parties and can move on to the next step.

Examining the contractual language

• Read the contract carefully, paying close attention to the terms and conditions
• Make sure to note any discrepancies or inconsistencies in the wording of the contract
• Identify any areas of the contract that are ambiguous or unclear
• Look for any language that could be interpreted to mean something other than what was intended by the parties when they entered into the contract
• Research any applicable laws that may apply to the contract in order to gain insight into the parties’ intentions
• Once you have identified any potential areas for breach of contract, you can move on to the next step.

Analyzing any pre-contractual negotiations

• Carefully review any written or verbal negotiations that took place prior to the contract formation
• Look for any explicit mentions of the subject matter of the dispute, potential breaches, and any other relevant information
• Determine if there is any evidence that either party had agreed to any specific terms or conditions that are not reflected in the contract
• Review any emails, texts, or other correspondence between the parties to determine if any pre-contractual negotiations were conducted
• Compare the terms of the contract to any pre-contractual negotiations to determine if there are any discrepancies
• If any discrepancies are found, determine if they are material to the claim or dispute
• When you have reviewed all of the materials and determined whether or not there were any pre-contractual negotiations, you can move on to the next step of assessing the nature of the breach.

Assessing the nature of the breach

• Identify the specific obligation that the other party allegedly violated
• Establish whether the contract was breached in whole or in part
• Determine whether the breach was material or immaterial
• Consider if the breach is capable of being remedied

Once you have identified the nature of the breach, you can check this off your list and move on to the next step.

Analyzing the language of the contract to determine the breach

• Carefully read through the contract to identify any language that applies to the alleged breach.
• Make notes of any relevant language, such as clauses or conditions that were not met.
• Research case law to determine if the breach is substantial enough to give rise to a claim of breach of contract.
• Compare the language of the contract with the facts of the breach to determine if the breach is material.
• Make sure to document any information relevant to the breach.

You will know you can check this off your list and move on to the next step when you have assessed the language of the contract to determine if the breach is substantial enough to give rise to a claim of breach of contract.

Identifying the type of breach and its potential consequences

• Determine the type of breach of contract that has occurred. This can be a minor breach, such as a late payment, or a major breach, such as non-performance of a contract obligation.
• Consider the potential consequences of the breach. Depending on the type of breach, there may be legal consequences such as fines, or personal consequences such as financial losses.
• Review the contract to determine the remedies that may be available. Depending on the contract, there may be remedies such as a waiver of payment or a specific performance of the contract.

When you can check this step off your list and move on to the next:

• When you have identified the type of breach and its potential consequences.

Deciding if the breach is material or non-material

• Analyze the contract to determine the obligations that are required of each party.
• Identify the specific clause that was breached.
• Compare the effect of the breach to the terms of the contract.
• Determine if the breach is material or non-material.

When you have identified the clause that was breached and compared the effect of the breach to the terms of the contract, you can check this step off your list and move on to the next step.

Understanding the legal definition of material breach

• Read the contract to better understand the expectations of the parties involved
• Review the situation to determine if the breach results in a failure to perform a substantial portion of the contract
• Consider if the breach affects the core purpose of the contract
• Determine if the breach makes it impossible for the contract to be fulfilled
• Evaluate the breach to decide if it is a material breach
• When you have determined that the breach is material, you can move on to the next step of analyzing the consequences of the breach to determine if it is material.

Analyzing the consequences of the breach to determine if it is material

• Assess the extent of the breach, including the financial and non-financial losses suffered by the non-breaching party
• Analyze whether the breach has had an impact on the other party’s ability to fulfill its contractual obligations
• Determine whether the breach has caused the other party to incur any financial losses
• Consider whether the breach has resulted in a loss of goodwill or reputational damage
• Determine if the breach has caused the other party to suffer any other type of loss
• Assess the value of the breach relative to the value of the contract
• When you have completed your analysis and determined if the breach is material, you can move on to the next step of identifying possible remedies for the breach of contract.

Identifying possible remedies for the breach of contract

• Review the terms of the contract to determine what remedies may be available.
• Look for any clauses in the contract that specify remedies for breach of contract.
• Research applicable state laws to determine if any additional remedies are available.
• Determine how the breach of contract has impacted the non-breaching party, and what type of remedy may be appropriate.
• Consider all potential remedies, including specific performance and damages.

You’ll know you’re done with this step when you have identified all possible remedies for the breach of contract and assessed the impact of the breach on the non-breaching party.

Recognizing the available remedies, including specific performance and damages

• Understand the two main remedies available for breach of contract: damages and specific performance.
• Determine whether either of these remedies are applicable to the case and would be the most appropriate form of enforcement.
• Consider whether compensation for damages, such as direct damages, consequential damages, and punitive damages, would be appropriate in the case.
• Understand specific performance, which is an order from the court requiring a party to fulfill the obligation they breached.
• Determine if the case is suitable for specific performance as an appropriate remedy.

When you can check this off your list and move on to the next step:

• When you have identified the remedies available in the case, including any potential damages and specific performance, and have determined which remedy is most appropriate for the breach.

Assessing which remedy is most appropriate for the breach

• Consider the type of contract and the intent of the parties when deciding which remedy is best
• Consider the type of breach and the impact it has had on the non-breaching party
• Consider the ability of the breaching party to fulfill the obligations of the contract
• Think about the costs and time associated with each remedy
• Research other cases to see what remedies were successful in similar cases
• Consult a lawyer on the best remedy for your particular situation

You’ll know you can move on when you have selected the most appropriate remedy for the breach.

Determining the statute of limitations for the breach

• Research the applicable state or federal statute of limitations for the breach.
• Determine the time limit in which to file the claim that is stated in the statute of limitations.
• Ensure that the time limit for the breach of contract claim has not passed.
• Once you have determined the applicable statute of limitations, you can check off this step and move on to the next step.

Locating the applicable state or federal statute of limitations

• Research state and federal laws to identify the statute of limitations for breach of contract
• Check the applicable state or federal statutes to determine the length of time in which an action must be brought
• Understand the elements of the cause of action and the applicable period of limitation
• Make a note of the statute of limitations applicable to the breach of contract
• When you are done researching, you will have identified the applicable state or federal statute of limitations for the breach of contract, and you can move on to the next step of Calculating the applicable time period for filing a lawsuit.

Calculating the applicable time period for filing a lawsuit

• Determine the type of contract that was breached, as this will determine the applicable statute of limitations
• Research the statute of limitations for breach of contract for the applicable state or federal laws
• Calculate the date when the breach of contract occurred and the date when the lawsuit can be filed, taking into account any applicable suspension of the statute of limitations
• Take note of the applicable time period for filing a lawsuit and make sure that the lawsuit is filed within this time period
• Once you have calculated the applicable time period for filing a lawsuit and taken note of it, you can move on to the next step of gathering evidence to prove the breach.

Gathering evidence to prove the breach

• Review the contract to determine what performance was expected and what terms were required
• Examine any relevant documents or other evidence to determine if the other party failed to deliver their end of the contract
• Identify any witnesses who can provide evidence that the other party breached the contract
• Look for any paperwork that shows how the other party failed to fulfill their obligations under the contract
• Gather any additional evidence that can be used to show the breach
• When you have gathered enough evidence to prove your case, you can move on to the next step of collecting relevant documents and other evidence.

Collecting relevant documents and other evidence

• Collect any documents that are related to the contract that was breached, including emails, invoices and other correspondence
• Obtain any physical evidence which may have been created or collected during the time of the breach
• Gather any other documents and evidence which may be relevant to the breach, such as purchase orders, contracts, or other records
• When you have collected all the evidence relevant to the breach, check it off your list and move on to the next step: interviewing witnesses to determine what occurred.

Interviewing witnesses to determine what occurred

• Prepare a list of questions to ask witnesses.
• Contact witnesses, inform them of their rights, and arrange interviews.
• Conduct one-on-one interviews with witnesses and record their answers.
• Ask follow-up questions to ensure accuracy of the facts.
• Check the answers against other evidence collected.

You can check this off your list when all of the relevant witnesses have been interviewed and their answers have been checked for accuracy.

Drafting a notice of breach of contract

• Gather all the facts and evidence you have collected from the witnesses in order to accurately draft the notice
• List out the details of the breach that the other party is responsible for
• Include the date of the breach and the consequences of the breach
• Include any relevant documents or evidence to support your breach claim
• Have the notice reviewed by a legal professional to ensure everything is accurate
• Once the notice is properly drafted and reviewed, send the notice to the other party
• You will know that you can check this step off your list and move on to the next step when the notice has been sent and received by the other party.

Outlining the facts of the breach

• Gather all the relevant documents that support your case and review them
• Make a list of the facts that support your claim of a breach of contract
• Make sure to include dates and other important details
• Identify which party is responsible for the breach
• Once you have a complete list of facts to support your claim, you can move on to the next step
• You will know that you have completed this step when you have a thorough list of facts related to the breach of contract

Demanding the appropriate remedy

• Research the contract to determine what remedies are available to you in the event of a breach
• Write a demand letter that outlines the facts of the breach and the remedy you are seeking
• Send the letter via certified mail with a return receipt to the breaching party
• If you do not receive a response within a reasonable timeframe, you can take further legal action to seek damages
• You will know you are done with this step when the breaching party has responded to your demand letter or you have taken legal action to seek damages.

Taking legal action in court to recover damages

• Research possible court options and select the one that best suits your needs
• Determine the jurisdiction and venue of the court
• Collect all relevant evidence and prepare a statement of claim
• Serve the defendant with the statement of claim
• Attend pre-trial conferences, if any, and prepare for trial
• Attend the trial and present your evidence
• Wait for a decision from the court

When you can check this off your list: When you have served the defendant with the statement of claim.

Filing a complaint in court

• Gather all relevant evidence and documents that show the breach of contract
• Draft a complaint that outlines the breach of contract, damages, and the relief sought
• File the complaint in court
• Pay the filing fees
• Serve the complaint on the other party
• You will know when you have completed this step when you have filed the complaint in court and served the complaint on the other party.

Serving the complaint on the other party

• Serve the complaint on the other party by delivering a copy of the summons and complaint with a return of service form.
• The return of service form must be signed by the person accepting service on behalf of the other party.
• Ensure that the other party is served within the time limit set out in the court rules.
• Check with the court clerk to determine the time limit for service in your jurisdiction.
• You can check off this step when the return of service form is filed with the court.

Negotiating an out-of-court settlement

• Contact the other party to discuss the possibility of an out-of-court settlement.
• Negotiate the terms of the settlement, including the amount of money paid, the timeline for the payment, and any other relevant details.
• Get the settlement agreement in writing and signed by both parties.
• When the settlement agreement is signed and any payment is received, the breach of contract claim is settled and you can move on to the next step.

Contacting the other party to discuss a possible settlement

• Make contact with the other party and propose a settlement negotiation to discuss potential solutions
• Make sure to keep a record of all contact attempts and responses
• Consider using a mediator or other third party to facilitate the negotiation if it is needed
• Present your case and listen to the other party’s point of view
• Discuss potential solutions and be willing to make compromises
• Make sure to reach an agreement that both parties can accept

When you have reached an agreement, you can check this step off your list and move on to the next step.

Drafting a proposed settlement agreement

• Draft a proposed settlement agreement based on the terms discussed in the previous step
• The proposed settlement agreement should include a clear definition of the breach of contract, the estimated damages, and the proposed resolution or remedy
• Have the proposed settlement agreement reviewed by a qualified attorney to ensure that it meets all legal and contractual requirements
• When all parties have agreed to the proposed settlement agreement, have the agreement signed by all parties
• Once all parties have signed the proposed settlement agreement, check this off your list and move on to the next step.

Example disputes

• A plaintiff may raise a lawsuit against a company or individual alleging breach of contract if they believe that the defendant has not fulfilled their contractual obligations.
• The plaintiff must prove that a valid contract existed between the two parties, that the defendant had a duty to perform, and that the defendant failed to perform the duty.
• If the plaintiff can prove that the defendant breached the contract, then the plaintiff may be entitled to damages to compensate for the breach.
• Damages may be calculated based on the losses suffered due to the breach, including lost profits, extra costs incurred in order to remedy the breach, or an amount necessary to put the plaintiff in a position they would have been in had the breach not occurred.
• In some cases, a court may require the defendant to complete the contractual obligations instead of awarding damages.
• If the breach of contract is severe enough, the court may also require the defendant to pay punitive damages in addition to any other damages awarded.
• Settlement may be possible before a lawsuit is filed, or during the legal proceedings. If the parties reach a settlement, the court will usually require that the terms of the settlement be in writing and signed by both parties.

Templates available (free to use)

Breach Of Contract California Notice
Breach Of Contract New York Notice
Breach Of Contract Notice
Breach Of Contract Notice Pursue A Remedy
Breach Of Contract Notice Response Pursue A Remedy

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