Chester County Failure to Perform Contract Attorneys

Pennsylvania businesses rely on contractual relationships in order to properly function. Depending on the nature of a particular company, it may need to work with suppliers, vendors and distributors. Employees are, of course, essential to any business. Some businesses may also need to rent office space and equipment. All of these relationships are governed by contracts, which may take the form of written or oral agreements.

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A valid contract, one that is supported by consideration, is a binding, legally enforceable agreement. However, sometimes the terms of a contract may not be fully or properly carried out by one of the parties to a contract. This can seriously affect the company’s ability to conduct its business if they depend on the breaching party to fulfill its duties as required by the contract. What happens when a party to a contract fails to perform their contractual obligations?

A party’s failure to perform their contractual obligations may result in a successful lawsuit if the failure to perform causes a material breach of the contract. This last part must be emphasized. It is very important to understand and keep in mind that, while a party may fail to perform some act that is technically contemplated or required by the contract, this failure will not have legal significance (the aggrieved party will not have a successful breach of contract action in court) unless the failure leads to a material breach of the contract.

That is, the party’s failure to perform must be in relation to something that is essential to the fulfillment of the contract. If the contract can still be carried out despite whatever it is that the party did not do, the contract will not be considered to be breached in such a way that the aggrieved party will have legal recourse.

A failure to perform that leads to a material breach of contract may lead to a lawsuit for breach of contract. If the aggrieved party sues for breach of contract and wins, the damages that they may be awarded are what are known as “expectation damages.” Expectation damages are so called because they are intended to place the aggrieved party in the position that they expected to be in had the contract been performed properly.

So, if the breaching party’s failure to perform causes the aggrieved party to make less money on the transaction than if it had gone through without a problem, the court may award the difference between how much money the aggrieved party expected to make and how much he actually made.

The aggrieved party may ask the court to require the breaching party to perform the act that they originally failed to perform instead of awarding monetary damages. This type of remedy is known as specific performance. However, specific performance awards are less commonly awarded than monetary damages.

If you think someone may have breached a contract they had with you by failing to perform, speak with a Chester county attorney to review what options may be available to you.