TLDR: Key Takeaways
- Initiating a Lawsuit: Steps to file a lawsuit for breach of contract.
- Contract Elements: Ensure your agreement includes offer, acceptance, and consideration.
- Legal Procedures: Understand where and how to file your legal claim.
- Professional Guidance: Consider whether to engage a lawyer for your lawsuit.
Legal Disclaimer: This article provides general information and is not intended as legal advice. For specific legal advice, please consult a qualified attorney.
You agree, shake hands, and then they change their mind. Frustrating, right? Such disagreements can lead to a lawsuit if one party does not honor their part of a deal, known as a breach of contract. Here's how to take legal action in such a situation.
Determine whether you have a contract with the other person
To have a contract, you need three things:
1. Offer
This is when someone proposes something specific, like selling a car for $5,000.
2. Acceptance
This happens when the other person agrees to the offer exactly as it was made.
3. Consideration
This means both people must exchange something of value, whether it's services, cash, or an item.
Most contracts do not need to be in writing.
Many people think all contracts need to be written down and signed. This is not true! A verbal agreement where both sides understand and agree to the terms is often enough.
Defenses to Contract Formation
Sometimes, even if it seems you have a contract, legal defenses can prevent it from being enforceable. For example, if one person was tricked into agreeing or if they were under extreme pressure ("duress"), the contract might not be valid.
If you have a contract and no defenses, the next question is: Has the other person breached the contract?
A breach occurs when one party fails to perform its obligations without good reason. Examples include not delivering goods on time, not paying, or not performing a service as agreed.
Where Can I File a Breach of Contract Lawsuit?
You can file your lawsuit in a court that has jurisdiction over the location where the breach occurred or where the defendant lives or does business.
File a petition and a summons.
Filing a lawsuit starts with submitting a petition to a court, stating your case, and a summons, which is a document that tells the other party they are being sued and they must respond.
After you serve the defendant
Once the other party receives the summons, they have a specific response period—usually around 20-30 days. If they don't, you might win by default.
Can the Statute of Limitations Be Extended?
In rare cases, the statute of limitations can be "tolled" or paused, giving you more time to file your lawsuit. However, this is the exception, not the rule. The statute may be tolled if:
- You were unaware of the breach until much later.
- The other party concealed the breach through fraud or misrepresentation.
- A minor or someone legally incapacitated was involved.
But again, these are rare exceptions, and it’s important not to rely on them. The best action is to file your lawsuit as soon as you realize the breach occurred.
Should I Get a Lawyer If I Want to File a Breach of Contract Lawsuit?
While you can file a lawsuit independently, legal issues can get complex. A lawyer can help you understand the law, prepare your case, and represent you in court.
Insights from a Private Investigation Business
Running a reputable private investigation business, we've seen countless breach of contract cases from behind the scenes. We often assist clients in collecting evidence crucial for proving a breach—like gathering documents, emails, or other communications that show the contract and the breach. In our experience, being well-prepared with solid evidence and understanding the legal framework can significantly impact the outcome of your case. Taking swift action to address the breach often puts you in a better position, whether in negotiating a resolution or presenting a compelling case in court.
