What does Breach of Contract mean?

Contracts are legally binding agreements that describe the obligations that everyone who is a part of that agreement has. When someone breaks the agreement, a breach of contract has happened. But does that mean that you should sue to enforce the agreement or recover money? There are some common questions and considerations to all breach of contract actions, but the specific facts of your case are important. Our attorneys can walk you through the costs and benefits of a claim for breach of contract depending on the unique set of issues that you’re facing.

Although breaches of contract happen all the time, there is a lot to consider if you’re involved in—or thinking of pursuing—a legal claim for breach of contract. First, to prevail on a breach of contract claim, you must show that there was actually a contract. A lot of people think that contracts must be in writing with formal language and wet-ink signatures, but that is not true in Colorado. Contracts can be informal “handshake agreements” or just spoken promises. Of course, the issue with these types of agreements is proving what the specific terms of the alleged agreement were. That can be complicated when the parties to the agreement no longer agree on what specifically was said or agreed to. Moreover, you have to show that the agreement was actually made. There are certain requirements that these agreements must comply with for a contract to exist—an offer, acceptance, and consideration (or the value exchanged in the contract).

Second, you must show that someone breached the contract. This seems like it should be straightforward: when someone does not do what they were supposed to do pursuant to the agreement, a breach of the contract has occurred. But proving a breach can be difficult if the terms of the contract are ambiguous or unwritten. Moreover, the law allows for some excuses if a party breaches the contract, so not all breaches necessarily are worth litigating if there is a sufficient defense for breaching the contract.

The third question that you should ask yourself is, “what are the damages?” By damages, we mean the monetary loss you incurred because of someone else’s breach. Proving damages can be difficult, especially when the damages relate to future opportunities or potential lost profits. And proving damages to a court or jury can be expensive, so it is important that your damages justify the costs of litigation.

If you have been damaged by a breach of contract—or if someone is accusing you of breaching a contract—the attorneys at Belzer Law can help assess the strength of your legal position and craft a strategy to help achieve your goals. We are experts at both bringing and defending claims for breach of contract, and we share that expertise with our clients every day in our collaborative approach to litigation.