A contract is formed when two parties mutually agree to enter into an exchange. A contract can be written or, under certain circumstances, it may be an oral agreement. Parties to a contract generally must perform as specified in the agreement unless all parties agree to change the terms of the contract or unless the actions of one party deviate from the agreed-upon terms and are subsequently accepted by the other party, notwithstanding the changes. If one party fails entirely to perform under the terms of the agreement, or prevents the other from completing its obligations under the agreement, a breach occurs and creates a claim for violation of the contract and damages payable to the party in compliance. The non-breaching party is also excused from its obligations under the contract after a breach.
Ordinarily the remedy for breach of contract is money damages. However, breach of some contracts may justify an action to enforce compliance. Under such circumstances, a judicial order can be sought to ensure that the actions under the contract are specifically performed. Dissatisfaction with the performance on a contract or partial performance does not automatically constitute a breach, but may give rise to a partial award for damages to compensate for the defects in performance where one party does not get the full benefit of the bargain.
If you need assistance drafting, interpreting or enforcing a contract, contact our office contact our office for assistance.
ABC Corp. v. XYZ Corp - 2006 Our client was sued by a contractor who over-charged for clean-up services provided after an explosion at a nearby property. Defendant's place of business burned due to a fire at an adjoining chemical business. Ohio EPA was concerned over possible chemical contamination of nearby open water. Plaintiff approached Defendant and offered to perform limited emergency services in an amount not to exceed $3,500. Defendant signed a contract reflecting this agreement. Plaintiff completed the requested work, but submitted a final bill totalling $24,099.67, over seven times the contract price. Defendant refused to pay more than the contract price. Plaintiff sued Defendant alleging breach of contract for the total balance of the bill. At trial Defendant presented evidence that Plaintiff had done no additional work to warrant the exhorbitant increase in the bill. Defendant also introduced evidence that some of the bills submitted to Defendant were for work performed by Plaintiff for another client. Jury Verdict: For Defendant. Attorney's Fees awarded to Defendant. Confidential settlement for attorney's fees reached at appellate level Breach of Contract
Reliable Snow Plowing Specialists, Inc. v. Wise International Trucks of Ohio, Inc.- 2006 In February 2004, Reliable sent truck number 506 to Wise to have its radiator repaired. The radiator was replaced, however, it was not secured properly. Almost a year later, several bolts holding the radiator fell off, and the resulting vibration caused a crack in the front cover of the truck's engine. In February 2005, Reliable returned the truck to Wise for replacement of the front cover and radiatior. An oil analysis was performed while the truck was at Wise, which showed no engine damage had occurred related to the crack in the cover. Reliable picked up the truck and in less than 50 miles from leaving Wise, the engine blew, causing irreparable damage. Wise refused to replace the engine at its cost, denying any responsiblity for the engine damage. Replacement of the engine cost Reliable in excess of $18,000. Suit was filed against Wise for the cost of the replacement. The resulting litigation proved that the Wise had not properly sealed the replaced front cover which allowed coolant to leak into the engine oil, causing the engine to overheat and blow. Though Wise argued that the engine had suffered from prior instances of neglect and overuse, Reliable's expert established that the oil analysis proved that the engine was in good health before it left Wise's shop. Resolution was reached at court ordered mediation prior to the trial of the case. Settlement: for Reliable as compensation for repair costs. Breach of Contract
| Disclaimer