Fundamental Breach of Contract

Fundamental Breach of Contract

Atlanta Business Litigation Attorneys

If you are a business owner, you already know how important a well-drafted contract can be for the overall health and profitability of your company. More importantly, you need to be confident that all concerned parties are following the contract accordingly, respecting it at all times and doing nothing to breach it.

People and parties that may be controlled by a business contract include:

Employees

Business partners

Third-party vendors

Shareholders

When a contract breach so severe occurs that it not only permits the distressed party to terminate the contract prematurely but also allows them to sue for damages, it is known as a fundamental breach of contract. At Buckley Beal LLP, our business lawyers in Atlanta can react quickly to any fundamental breach that may be jeopardizing your business, company, or corporation, whether you are a small, local entity or one with connections across international borders. By taking the initiative and retaining legal advocacy, you reduce the chances of a fundamental breach causing further harm to you and your business, and may even be able to repair the damage that has been done.

Qualifications and accolades our team has attained and achieved include:

85+ years of combined legal experience

One of Best Lawyers “Best Law Firms” (2015 – U.S. News)

AV® Preeminent™ Rating by Martindale-Hubbell® (Attorneys Beal and Kramer)

Keep your business’s bottom-line protected. Contact us today.

Key Elements of a Fundamental Breach Case

Accusing someone, or being accused yourself, of a fundamental contract breach is a serious legal situation. The ramifications of an actual breach may be massive, affecting all aspects of your business. Before you are involved heavily in discussions or litigation, you will want to verify that the main three key elements of a fundamental contract breach actually do exist.

Our attorneys can review your contract to see if the following elements do exist:

  1. Validity: Only a valid contract, whether it is oral or written, can be breached. Contracts are valid if they include a clear offer, the acceptance of that offer by all parties, and the mention of consideration, or what each party will give in exchange for the goods or services of the other.
  2. Breach: If the contract is valid, the breach must be tangible enough to be noticeable. Different forms of breaches include partial, material, anticipatory, and fundamental, with a fundamental causing significant harm.
  3. Damages: Actual harm must be a result of the breach and you must be prepared to prove the harm exists. Financial damages are clear examples of monetary harm but loss of reputation or partnerships can be cited when seeking punitive damages.

Example of a Fundamental Contract Breach

If your business is the distressing party in a contract dispute, any breach may feel like a fundamental breach of contract. For your case to be successful, it is important to pursue legal options under the notion that a fundamental breach has caused significant and noticeable harm and hardship. If the breach can be described as anything less, you may lose an advantage in any resulting negotiations or lawsuits.

An example of a fundamental breach of contract:

Your company agrees to purchase shipments of a particular product from a vendor for sale at your retail locations. Each month you are to be provided another shipment to keep supplies on your shelves but all shipments are paid for upfront. After several months, the vendor suddenly stops sending you shipments, you can no longer sell the products, and you have lost money on missed sales opportunities. The breach of contract would be fundamental because you already paid for missing shipments, the shipments did not arrive, and your business lost profits and reputation. Any lawsuit you file could cite damages for at least these three forms of losses.

Georgia’s Elite Business Lawyers & Legal Team — (404) 471-3725

Buckley Beal LLP is entirely committed to giving our clients service delivered with unrivaled excellence and responsiveness. Our Atlanta business attorneys take each case we handle personally, valuing your own priorities as if they were our own. We also make every effort to get to know you and your business’s goals so we can help you meet them with as little difficulty as possible.

Get help with your fundamental contract breach case today and request a consultation.

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