When two businesses in Tennessee enter into a contract, they naturally expect that they will both follow through on their obligations under the contract. Unfortunately, that doesn’t always happen, and contractual disputes arise. Sometimes a party fails to fulfill part or all of what they promised to per the terms of the agreement. When that happens, this is referred to as a “breach of contract,” and it may form the basis of a lawsuit.
There are numerous points to consider when determining whether a breach of contract occurred. First, a valid contract must exist, wherein each party agreed to exchange something of value with one another, so that each party benefits from the contract. It will need to be noted whether any modifications were made to the contract prior to the alleged breach.
Of course, the party claiming breach will have to prove the breach occurred and that it was material, meaning that due to the breach the wronged party received something that was significantly different than what was specifically agreed to per the terms of the contract. If the other party has any defenses that would make the contract unenforceable, these will be considered. Finally, the wronged party must have incurred damages due to the breach.
If a breach of contract has occurred, the wronged party may want to determine what their options are. Because contracts often form the backbone of a business, it is important that any contractual disputes are resolved. While sometimes the parties can settle the issue through mediation, other times it is necessary to take the matter to court. In either case, it can help to have a good understanding of the law and one’s rights and duties under the contract, so that informed decisions can be made.