Contracts form the backbone of daily business operations. However, breaches of contract can occur because of ambiguity in the contract’s language, a failure to deliver or pay for goods and delays that violate contract agreements. Working with an experienced lawyer to handle contract breaches is often necessary to protect a company’s bottom line.
When your business is subject to a contract breach, you have a limited amount of time to take legal action. For contracts not involving sales, the statute of limitations is six years, and the time begins to run from the date the contract breach arose. For sales of goods, New Jersey Statutes 12A:2-275 limit the time to file a lawsuit to four years. The time begins to run on the date when the breach occurs, whether or not the damaged party has knowledge of the breach. By mutual agreement, you and the other party can reduce the limitation period to one year but may not extend it.
The difference between a breach of contract and a breach of warranty is that a breach of warranty applies when the quality of the product does not meet the standards specified in the contract. You can seek damages based on the warranty breach. Breaches of contract lawsuits typically seek to revoke or enforce the contract. Various court cases address the differences, and it is a complicated area of law.
Through commercial litigation, New Jersey breach of contract lawyers can address many different types of disputes arising from communication breakdowns between businesses or between businesses and consumers. By working with a knowledgeable attorney, you can safeguard your business interests through out-of-court settlements or litigation.