What is Breach of Contract?
Breach of Contract is one of the legal terms that describes the violation or any act that is against the agreement that was signed between two parties or individuals or when one individual or party fails to fulfill their responsibilities or promises according to the provisions of the agreement there was decided. The main reasons for disputes among two parties are the breach of contract which may result in the ending of the contract in whole or in part. It is not very uncommon when one or both parties fail to fulfill their decided promises and contract disputes are brought to court for resolution. Most contracts successfully end when both parties fulfill their responsibilities and promises as per the contract.
Requisites of Breach of Contract
According to the Breach of Contract of UAE Law there are some pre-designed sets of rules and regulations for any legal offense. There are few conditions when the breach of contract will occur in legal terms. Certain requirements are to be met when a suit for breach of contract can be held in courts when a client decides to cancel the contract while you are running any business, which are mentioned below:
A Must Valid Contract:
As per Breach of Contract Lawyers, it is necessary that without necessary provisions mentioned in the contract as per law there cannot be a suit; the contract must be valid. The contract is not valid unless it contains every essential single element as per the requirement of the law.
A Valid Proof: The plaintiff (the party which is bringing against another in court) must provide enough & legal proofs that the defendant breached the provisions of the contract or agreement.
Plaintiff Must Fulfill all the Requirements: The plaintiff must be sure that he upholds everything that is mentioned in the contract and that he has not violated any provisions of the contract.
Written Notifications: The claimant is to advise the defendant of the contract breach before the filing of the case. The notifications must be in written form rather than verbal as written proofs are stronger proof for law and courts.
The Legal Remedies for businesses when clients cancel Contracts
There are legal remedies mentioned in law for any kind of legal dispute or problem that may arise. According to the Breach of Contract Lawyers, there are few remedies and options that you can go for before you initiate the case in court against the other person. It is worth taking to go through the contract and making sure you explore and consider all possible options available to you.
You may also read: Categories of Breach of Contract in the UAE
There are some monetary remedies that the claimant can avail of and adapt before dragging the case into court. A few of them are:
Compensation for the damage: To reimburse the cost and damage that has occurred as the result of contract cancellation; the defendant will pay the amount to the claimant to compensate for the loss that has occurred.
Compensation for Incidental and Consequential damages: Depending upon the nature and extent of the loss that has been incurred the defendant will pay the amount of money to compensate. The Breach of Contract of UAE Law suggests that this remedy is normally adopted when all parties part of the contract was already aware of the potential losses that may occur due to the breach of contract.
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Liquidated damage: This is paid when one or more parties involved fail to perform and fulfill their duties as mentioned in the contract. This amount and condition when to pay is already determined in the contract and is paid when the breach of contract takes place.
Punitive damages: This condition and remedy are very rare and are traditionally awarded to the plaintiff as a result of the offensive behavior and attitude of the defendant.
Other Conditions: There are few cases when the court must consider other than money. For such cases, the court may order any of the following conditions:
Specific performance: In this case, the court will order all parties involved and part of the agreement to follow and fulfill the obligations that are mentioned in the contract.
Rescission: This is the condition when the court orders to cancel the full agreement as it never took place and return all the money that was involved in the whole matter.
Reformation: This is also known as “do-over” where the court orders to cancel the old contract and draft a new one with all provisions and details mentioned with complete clarity. The rewritten agreement may better reflect and clear the intentions of the parties involved.
Mitigating Loss: It is the responsibility of the victim to minimize the loss that has occurred due to the breach of contract. He must take reasonable steps to make sure that the situation does not get worsen and the loss doesn’t increase any further. However, in this case, courts can take into consideration the fact that every loss cannot be the responsibility of the defendant. If the claimant wishes to get the highest compensation, he must make sure that none of his actions has caused any damage.
We advise you to hire a lawyer and legal assistance if you think that you are in a situation where the other party is committing a breach of contract. The parties may decide to hire the mediate to solve the dispute or they may mutually agree on any decision.
If you need any guidance and legal assistance in this regard, we have an associates team of experts who dissolve your disputes.