Breach of Contract and Commercial Transactions
We vigorously represent clients on a variety of contract and commercial transactions and business disputes. Businesses, business owners, investors, entrepreneurs and other consumers enter into contracts everyday, whether for buying or leasing residential and commercial real estate, purchasing or selling goods and services, licensing intellectual property, taking out an insurance policy, or simply partnering for a projector or becoming debtors or shareholders in a company. Because contracts are central to any business relationships it is important to understand the terms of the contract before entering into one.
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Generally, claims for breach of contract and commercial transaction arise when the business dispute is based on a contract. Disputes with clients, suppliers, business partners or managers can prevent the parties from carrying out the terms of the contract or agreement, resulting in lawsuits for breach of contract. In Florida, contracts are governed by the common law of contract and contracts for the sale of goods are governed by Uniform Commercial Code (UCC) Article 2.
A contract is an agreement between two or more persons, whether individuals or business entities, in which one party agrees to provide goods or perform services in exchange for compensation (payment of money or other goods and services). In order to form a legally binding contract in the State of Florida, there must be an offer, an acceptance of that offer, consideration and mutual understanding as to the essential terms of the contract. If the parties fall short of reaching a threshold level of agreement by these standards, then there the contract is not enforceable. However, even if the standards are met, a contract is not necessarily legally binding unless the parties have capacity or legal ability to contract.
A binding contract can be in the form of a written or oral agreement. In Florida, certain types of contracts are required to be in writing in order to be enforceable. These contracts include contract for the sale of goods of $500 or more except for specially manufactured goods for the buyer, contracts for the sale of real estate and conveyance of property including leases for one year or more, contracts that cannot be preformed within one year, contracts guaranteeing the debt of another, executor contracts and contracts for marriage.
Contracts generally end when the parties to the contract have fulfilled their obligations as specified in the signed agreement. However, it is common for one of the parties to fail to perform one or more of their duties and obligations under the contract, either through action or inaction, resulting in a breach of contract.
A breach of contract is a failure by one or more of the parties to the contract to honor the agreement by failing to perform of by interfering with the other party’s performance, without having any legal excuse to do so. A number of actions or inactions can constitute a breach. They may include without limitation, failure to performs within a specified time, failure to perform the obligations as described, failure to pay or interfering with other party’s ability to fulfill the agreement.
Depending on the nature of the transaction, the remedies available for breach of contract and commercial transactions include monetary damages, specific performance, restitution and rescission and reformation.
Contact us, your business attorney in Florida, to assist you with breach of contract matters and commercial transactions.