Business law exists in Michigan and across the nation to protect a company’s interests and their rights. Companies often enter business agreements with other parties for their mutual benefit. While these generally go smoothly, problems can occur.
When two or more parties enter a business agreement, each party agrees to fulfill their part of the terms, which can vary widely. Often, the terms include the payment of money by one party in exchange for the provision of goods or for services performed by the other party. Breach of contract means that one of the parties failed to fulfill its duties. It might not have completed its obligations in a timely fashion or the goods or services might not be up to a specified standard. In other cases, they might not be completed at all.
If such a breach occurs, the injured party has the right to pursue a remedy. It might try to work out an informal resolution. If those efforts are not successful, it might seek out the services of a mediator to help with out-of-court options, such as alternative dispute resolutions or binding arbitration. It could also decide to take the case to small claims court in order to resolve it if the breach is fairly small. The party in default will need to make some type of remedy, often financial, to the injured party. These damages might include compensatory damages, punitive damages, nominal damages, liquidated damages, specific performance or cancellation and restitution.
In a breach of contract, the wronged party will likely be entitled to corrective action. A business lawyer might be able to help a client determine the best type of damages to seek, depending on the type of case.
Source: Findlaw, ““Breach of Contract” and Lawsuits“, August 14, 2014