A contract is an agreement between two parties in which each party promises a performance of some kind. For example, a manufacturer of goods might promise to deliver a quantity of goods of a certain type by a certain date; the party who is to receive the goods promises to pay a certain price by a certain time and in a certain manner.
A valid contract is legally enforceable. This means that both parties are obligated to perform as promised; if either of them fails to do that, the other party may go to court to make them do what they promised in the contract or pay money damages to compensate the other party for any losses they suffer.
A contract may represent an oral or written agreement. A valid oral contract is as enforceable in a court of law as is a written contract with some exceptions. The law requires certain contracts to be in writing. A contract may also be express or implied by circumstances. If a certain transaction is important to a person, they might want to consult an attorney about putting it in writing.
A breach of contract occurs when one party to a contract fails to perform as promised in the agreement, and the other party suffers a loss as a result. A party’s failure to perform as promised is a “breach.” If one party breaches the contract, the other party may suffer economic losses.
For example, if a manufacturer pays for the delivery of material needed to manufacture a product and the supplier fails to deliver, the manufacturer may lose sales of the manufactured product that it then cannot deliver to its customers. This would cause the manufacturer to experience an economic loss.
An individual whose contract has been breached by another party would begin by reviewing their contract to see if it contains any clauses regarding how disputes about performance may be resolved. They would also want to consult an attorney who could review their contract and the facts of the situation regarding the breach and provide insight into whether the contract is valid, whether there has been a breach, and how any dispute might be resolved.
Some contracts provide that the parties must resolve any disputes about contract performance through alternative dispute resolution processes such as mediation or arbitration. Or the contract may set a time limit within which a party must make a claim to the breaching party. The contract may require a party who is dissatisfied with the performance of the other party to follow certain procedures before filing a lawsuit.
If it appears that the best way forward after a party has breached a contract is to begin a lawsuit, the individual or entity would start by filing a complaint in the appropriate civil court.
A complaint is a technical legal document that explains the basis on which the plaintiff, the entity that files the complaint, has a legal cause for complaint and the remedy they seek. The individual or entity that is named as the cause of the plaintiff’s loss is the “defendant” in legal terminology.
The complaint must then be served, i.e., delivered to the defendant, who has 30 days to file their answer to the complaint. Once both the complaint and answer have been filed, the lawsuit is officially underway.
How Do I Sue for Breach of Contract?
One of the first issues an individual faces when they decide to sue for breach of contract is to choose the court that handles breach of contract cases. One of the factors that indicates the court in which a person should sue is the remedy that they want to obtain.
Choosing the right court in which to file a lawsuit can be a complex problem in some situations. It depends on which court in Florida has jurisdiction of the dispute. An individual or business that is thinking of suing would want to consult a local Florida attorney about the choice of court in which to sue.
One factor that affects the choice of court is where the defendant is located. In some instances, a plaintiff might want to file their lawsuit in a federal court as opposed to a state court.
A person must file a breach of contract lawsuit in a court that has jurisdiction over the subject matter, i.e., breach of contract, the amount of damages at issue in the case, and the parties to the lawsuit.
The two most common remedies are money damages and specific performance. Money damages would simply be an amount of money that compensates the party for any provable economic loss they have suffered as a result of the other parties failure to perform under the contract as promised.
In Florida, a party who has not received the performance they are promised in a contract may also ask for specific performance. They would do this when an award of money damages would not adequately compensate them for their loss. If they are awarded specific performance, the other party is ordered by the court to provide the performance promised in the contract.
A court does not award specific performance if doing so would be “unjust, unfair, or inequitable.” Specific performance is often used if the contract involves the sale of a special parcel of real estate or the exchange of unique items of property.
It is not used for contracts that involve items of personal property unless the market value of the item cannot be valued easily, e.g. a family heirloom. Or the contract might involve specific corporate stock that is not traded on open markets, or the stock may be stock in a closely held corporation.
The court in which a person would file their lawsuit for breach of contract depends in part on the amount of money damages they seek. There are 67 counties in Florida and each one has at least one County Court. In some parts of Florida, the civil division of the County Court would be the place to file a breach of contract lawsuit if the plaintiff seeks damages of more than $8,000 up to $30,000. A plaintiff would file their case in Small Claims court if they seek damages of up to $8,000.
In other counties in Florida, a plaintiff would be able to sue for up to $30,000 in damages in a County Court and for damages of more than $30,000 in a Circuit Court.
If a person seeks specific performance of their contract, they would probably prefer to file their lawsuit in a Circuit Court. In part, this is because there is no guarantee that a court would award a plaintiff specific performance, and if it does not, then the plaintiff would want to be able to get an award of money damages that fully compensates them for their losses.
How Long Do I Have to Sue for Breach of Contract?
The statute of limitations for a breach of contract lawsuit in Florida depends on whether the contract at issue is written or oral. If the contract is written, the statute of limitations is 5 years. If it is oral, the statute of limitation is 4 years. The statute of limitations begins to run when the contract is breached.
Of course, it may be more difficult to prove the existence of an oral contract and its terms in a court of law. Whether an individual’s contract is oral or written, they would want to keep all evidence of the contract and its terms and provisions. It is critical to keep complete records of all documents related to a contract in case legal action becomes necessary.
After the statute of limitations period expires, the defendant may use it as a defense in a lawsuit for breach of contract. If a court agrees that the statute period has expired, they may dismiss the lawsuit and fully deny the plaintiff the right to sue. This could end their right to seek damages through the legal system.
Should I Get a Lawyer if I Want to File a Breach of Contract Lawsuit?
If you are a party to a contract that has been breached, you need to consult a Florida breach of contract lawyer. LegalMatch.com can quickly connect you to a lawyer who can help you negotiate a resolution of your dispute.
If negotiation does not solve the problem, your lawyer can represent you in your lawsuit and guide you through the legal process. Contract law can be complicated and an experienced lawyer will offer you invaluable help.
