Help! They’ve Breached their Contract!

Before someone can sue for breach of contract, it is important to know what a contract is. A contract is a legally enforceable promise. A contract can be verbal, and sometimes, it must be written. So, in order for there to be a breach, there must be a contract. However, pursuant to Ch. 9 of the North Dakota Century Code, to be valid:

1. You must be capable and have the capacity to contract;

2. Both sides must consent to the creation of the contract freely, mutually, and communicated by both sides;

3. The contract must contain a lawful purpose and possible obligations; and

4. Consideration (something of value) must have been exchanged.

A breach of contract happens when one party in the contract fails to perform his or her part of the contract, or when one party makes it impossible for the other to perform his or her part of the contract. A breach can be extremely frustrating as a contract’s main function is to protect someone’s expectations of the event. When a breach of contract has occurred, sometimes legal action is the only form to rectify the situation. Once you have found the right attorney to advocate for your position, he or she will be able to come up with the best game plan to meet your goals. Some of the most common remedies are as follows:

Recission

Recission is a fancy way of saying “cancel the contract.” Recission is used when one party has breached, the other party can cancel or refuse to perform. This remedy protects you from having to perform the contract and may possibly compensate you based upon the non fulfilment of the contract. However, rescission may not be granted if: (1) there is no way to restore the parties to their original position, (2) the party has tried to rectify the contract with good faith, and (3) a full recission cannot be completed if part of the contract has been completed. N.D.C.C. §9-09-02.

Quantum Meruit

Quantum Meruit means “as much as earned.” Quantum Meruit is used when one party has begun the work, but before he or she could finish, the other side terminates the contract or makes it impossible to finish. Missouri Valley Perforating, Inc. v. McDonald Investment Corporation, 439 NW2d 812, 813 (ND 1989).

Specific Performance

Specific performance means finishing out the contract as agreed. If someone is suing for specific performance, the court may be able to decree the other party perform the promise that was made. Attorneys use specific performance when compensation is not an adequate relief, and/or when there is no way to ascertain the damages. N.D.C.C. §32-04-08.

If you need help with a potential breach of contract situation, please give one of our attorney’s a call! Thank you.