In: Accounting
Imperial Brass Ltd wanted to computerize all of its systems. Jacob Electric Systems Ltd presented Imperial with an offer that met Imperial’s needs. In August, Imperial accepted the offer, and then agreed to Jacob’s “tentative” schedule for implementation, which led Imperial to expect a totally useable computerized operation by mid-January. Jacob represented to Imperial the time line, guaranteeing the timeliness of the project even though the time line was tight. Jacob casually mentioned that at most they would need a 30-day extension. In October, it became clear that there were problems with the software being developed, and Imperial asked for corrections to be made. At the end of October, the hardware and two software programs were delivered to Imperial, and Imperial’s employees attempted to begin to use the programs. Very little training was provided, as it was not expressly stated in the contract. There were also major problems with the computer screens freezing and data being lost. Some help was offered by Jacob in January, along with some operating instructions, but Imperial’s employees were still unable to make any use of the programs they had. Mr. Sharma, was one of the many programmers whom Jacob assigned to Imperial’s contract at the start, continued to work on the remaining programs. In May, however, Jacob informed Imperial that Sharma would be leaving the company, and Imperial informed Jacob that if that were to happen, given the problems and delays the company had already experienced, Imperial would be forced to sue Jacob for breach of contract.
Here steps are given on how to sue a company for breach of contract . This may help you -
"Breach of contract" is a legal term that describes the violation of a contract or an agreement that occurs when one party fails to fulfill its promises according to the provisions of the agreement. Sometimes it involves interfering with the ability of another party to fulfill his duties. A contract can be breached in whole or in part.Most contracts end when both parties have fulfilled their contractual obligations, but it's not uncommon for one party to fail to completely fulfill their end of the contract agreement. Breach of contract is the most common reason contract disputes are brought to court for resolution.
General Requirements -
A breach of contract suit must meet four requirements before it will be upheld by a court.
Types of Breach of Contract-
Breach of contract can be material, partial, or anticipatory.
A material breach is one that is significant enough to excuse the aggrieved or injured party from fulfilling their part of the contract.
A partial breach is not as significant and does not normally excuse the aggrieved party from performing their duties.
An anticipatory breach is one where the plaintiff suspects that the offending party might breach a contract by doing or failing to do something that shows their intention not to complete their duties. Anticipatory breaches can be very difficult to prove in court.
Defenses to a Breach of Contract Lawsuit -
As in all lawsuits, the defendant—the party being sued—has a legal right to offer a reason why the alleged breach is not really a breach of contract or why the breach should be excused. In legal terms, this is called a defense. Common defenses against a breach of contract include:
Fraud: This means "knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment." When a defendant presents this defense, they're saying that the contract isn't valid because the plaintiff failed to disclose something important or because they made a false statement about material or important fact. The defendant must establish that the fraud was deliberate.
Duress: This occurs when one person compels another to sign a contract through physical force or other threats. This, too, can invalidate a contract because both parties did not sign from their own free will, which is a standard contractual prerequisite.
Undue influence: This is similar to duress. It means that one party had a power advantage over the other and that they used that advantage to force the other to sign the contract.
Mistake: An error committed by the defendant can't invalidate a contract and take away a breach of contract case, but if the defendant can prove that both parties made a mistake about the subject matter, it might be enough to invalidate the contract and this would serve as a defense.
Statute of Limitations: Many types of cases have time limits imposed by law, deadlines by which a case must be brought and filed. A breach of contract case can be thrown out of court if the defendant can show that the statute of limitations has expired. The Statute of limitations case has a basis on time frames that are set by individual state law so they can vary. They average from three to six years for a written contract.
Remedies for Breach of Contract -
The plaintiff can be made whole in several ways if the other party is found to be in breach of a contract. In legal terms, this is called a remedy, and the most common remedy when one party is found to be in breach of a contract is a monetary payment.Some other common remedies for a loss resulting from a breach of contract include damages and injunctions. Damages are amounts of money that compensate the victim for any actual loss he suffered. Punitive damages involve extra money a court might tack on as a form of punishment if the breach of contract was particularly egregious and intentional. An injunction is an order by the court that requires the guilty party to stop doing whatever action is causing damage to the other. A court might also order the rescission—the cancellation—of the contract. Sometimes the plaintiff has been so badly damaged by the breach that the injured party is allowed to rescind or terminate the deal.