A breach of contract occurs when two parties enter into an agreement, and one party does not deliver on that agreement by failing to perform on time, failing to perform in the agreed manner, failing to perform at all, making known their intention not to perform, etc.
Circumstances for Breach of Contract Suit
Missouri Statute of Frauds requires that in order for action to be taken against a party for breach of contract, the contract must be in writing. In some cases the suit may be brought under the doctrine of Promissory Estoppel if the plaintiff is able to prove that he or she relied on the word of the defendant to his or her detriment, and that injury will result if the promise is not enforced.
Action must also be taken within the statute of limitations. Missouri's statute of limitations for breach of contract is four years from the date of the alleged breach. If the damages are less than $3,000, your suit can be filed in the small claims court, with or without legal representation provided you have evidence in the form of a contract or other paperwork. Larger claims should be filed in civil court with your expert legal counsel.
Results of a Breach of Contract Suit
If it is determined a breach of contract occurred, the plaintiff is entitled to a remedy in the form of damages, specific performance, or cancellation and restitution.
Damages: Payment made to the non-breaching party by the breaching party
1. Compensatory damages reinstate the non-breaching party's position before the breach occurred.
2. Punitive damages are intended to punish the breaching party, and go above and beyond the point of full compensation for the non-breaching party
3. Nominal damages are awarded when a breach occurs but financial loss is not proven
4. Liquidated damages are damages that were predetermined in the contract by both parties before the breach occurred.
Specific Performance: If damages are considered inadequate to reinstate the party's previous position before the breach, the court may order performance of the contractual duties in order to put the non-breaching party in a position comparable to what it would be had the breach not occurred.
Cancellation and Restitution: If the non-breaching party performed under the contract and benefited the breaching party, he or she can sue to cancel the contract (thereby voiding it and releasing both parties from the obligation) and to receive restitution (reinstatement of the non-breaching party's previous position before the breach).
SCHEDULE YOUR CASE REVIEW TODAY
Breach of contract is a serious issue and deserves skillful representation by a knowledgeable, experience business law lawyer. Call HSSO to meet with your expert counsel today.
Holder Susan Slusher Oxenhandler LLC, Attorneys, 107 North 7th Street, Columbia, MO 65201
