Understanding breach of contract in Louisiana

On Behalf of Dunlap Fiore, LLC |

Business contracts are the foundation of how things get done between one company and another or a company and an individual in Louisiana. It is unfortunate that not all contracts will go as planned and a contract dispute can arise. When there are issues between those who have agreed to a contract with each other, it is possible that a breach of contract will be alleged. Having legal help when this comes up is an integral part of a successful outcome.

A breach of contract happens when there are agreements in place and there was a failure on the part of one party to complete it as contracted. There are numerous factors that can be considered a breach including not completing the job on time; not performing according to the terms; or not doing the job at all. There are two categories for a breach of contract: immaterial and material. This will be imperative when the legal situation is hashed out or there is an available remedy. The circumstances play a large role in whether there was a breach of contract. A small issue that is minor and out of the party’s control will likely be deemed immaterial if it has no influence on the outcome. If there is a major influence on the outcome, then it will likely be deemed material.

There are numerous remedies for a breach of contract. There can be damages paid to the party that was harmed. Compensatory damages will seek to place the party that did not breach the contract back on the same plane they would have been otherwise. Punitive damages are basically punishments, but are infrequent in business. Nominal damages are token to acknowledge the breach, but are not linked to money loss. Liquidated damages cover damages that are specifically mentioned and there will usually be a reasonable estimate of the damages that the breach created. Specific performance are alternative remedies when damages are inadequate by themselves. Cancellation and restitution allows the contract to be eliminated and for the party that did not commit a breach to be paid back so they can return to where they were prior to the breach.

Businesses large and small need to be cognizant of the sanctity of a contract and what can happen if there is a breach. In some instances, it is not a major issue, but in others it can lead to long-term problems and a tarnished reputation. Having assistance from an attorney who is experienced in handling disputes related to breach of contract is important for any business.

Source: files.findlaw.com, “Breach,” accessed on Aug. 22, 2017