Sheehan & Associates, P.L.C.

Handling breach of contract in Michigan

After a sales contract is signed and money or other consideration changes hands, that contract becomes a binding legal document. Failure to live up to the terms of the contract could constitute a breach. A material breach of a contract occurs when the main promise of the contract is not delivered. When a material breach occurs, it may be possible for the buyer to take the seller to court to seek relief.

There are a variety of damages that a party may need to pay due to a breach of contract. Restitution may need to be paid if the other party suffers an actual loss while stipulated damages may be paid if the contract calls for them. It may also be possible to have to pay general or consequential damages because of the breach.

In some cases, the terms of the contract will stipulate when and how contract disputes may be settled. An arbitration clause in a sales contract may prevent a case from going to court, which may expedite the resolution. In arbitration, an arbiter makes a binding decision that generally cannot be challenged further.

A business law attorney may be able to handle cases involving contracts that may have been breached. It may be possible for an attorney to seek any damages as stipulated under the contract. This may enable the breached party to be made whole and exit the agreement without incurring excess loss. An attorney may also be able to provide representation and advice if the dispute must be resolved through arbitration.

Source: Houston Chronicle, "What Can Happen if You Breach a Sales Contract?", Lee Nichols, December 07, 2014

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