If one party fails to fulfill the promises the agreement, that party has breached the contract. Let’s circle back to the roofing contractor example. Let’s say that you have paid your roofing contractor half of the agreed-upon amount for your roof upfront. However, after installing part of your roof, your contractor stops showing up and does not finish your installation. By failing to fulfill their promise to provide you with a new roof, the contractor has breached the contract.
One party may suffer a financial loss if another breaches the contract. There are a few options for obtaining compensation:
- You can sue for damages. You could file a lawsuit against the contractor for damages. For example, you might sue for the cost of repairs caused by damage to your home incurred by having an incomplete roof, the cost of hiring another contractor to finish the job, as well as any additional costs you may have incurred due to the delay.
- You can sue for specific performance. This means you may be able to legally compel the contractor to complete the work required and specified by the contract (not a common remedy as courts don’t like to force parties to do undertake work by Court Order).
- Other legal recourse: If the contractor obtained the contract by fraudulent means or exercised force to obtain the contract, you may be able to convince a court to amend the terms of the agreement or even terminate the contract.
Failure to fulfill the terms of an insurance policy may constitute a breach of contract. However, you also have obligations under the agreement. You are required to cooperate with your insurer when it investigates a claim. If you file a claim and then do not cooperate with the insurer’s investigation, this may constitute a breach of the insurance contract. Your insurer could use your breach of the contract as its basis for denying your claim.
As contracts are legally binding, it’s extremely important to make sure you are protected. The attorneys at Raich Law have your best interests in mind when we oversee, review, and execute contracts on your behalf. Ensure you are absolutely covered before you enter into any agreement. Raich Law has multiple offices in Nevada and California to serve your needs. Please call 702-758-4240 for an appointment or email us at [email protected]