If you have recently formed business contract, you should rely on a New Jersey breach of contract lawyer to ensure that neither you nor the other party breaches the contract.
New Jersey Breach of Contract Lawyer Defines a Contract
A contract is a legally enforceable agreement between at least two parties who will be bound to do or not do a certain action.
A contract will be created when a party offers to do something, a second party accepts the offer, and something of value is provided to keep the promises made.
An Example of a Contract
Your company offers to purchase computers from a seller for $5,000. Once the seller takes the offer, a contract will be formed for a sale of the computers.
If you are starting a business, you should learn about the various forms of contract that your business will enter into. These include an agreement to buy the business, leases for real and personal property, agreements to buy anything else, and agreements in which the two parties will take specific actions if the promises made are backed by something of value. Making sales to customers or agreeing to hire workers for a given amount of time are referred to as “considerations.”
When you purchase a business, you also take over the remaining obligations of the company’s outstanding contracts.
All parties agreeing to a contract are obligated to fulfill the terms of the contract. If a party fails to carry out this obligation, they have committed a “breach of contract.”
Nonperformance refers to the failure to carry out one’s obligations set out by a contract. While a breach of contract is always considered as a “nonperformance of duty,” every nonperformance of duty is not necessarily a breach of contract. In fact, you do not have to carry out your promises under a contract until you are expected to do so.
Example of Nonperformance
When you agree to pay the seller for the delivery of the product, you are only required to pay the seller after the product has been delivered. If you fail to pay after receiving the product, then you have breached the contract.
Impossibility of Performance
There are certain situations in which a party cannot fulfill their contract obligation due to unforeseeable circumstances. For example, if a web designer hired to create your company’s website passes away, the website cannot be created. This is called an impossibility of performance, which effectively terminates a contract.
Breach of Implied Duty
It’s possible for a contract to lay out legal responsibilities that were not explicitly stated by the parties. The act of forming a contract will occasionally imply duties for parties, such as implied duties to not restrict the performance of the contract or not repudiate (reject) the contract.
If you believe your partner or a company acted in breach of contract, you should consult a business attorney to remedy the situation. For a free initial consultation with a New Jersey breach of contract lawyer, please contact the law offices of Snellings Law LLC at 973.265.6100.