what to do if served papers for breach of contract
Commercial Litigation
What to Do If Y'all're Sued for Alienation of Contract
Contracts are essential when doing business concern; and, in a perfect world both sides would benefit from the contract and no disputes would arise. However, delays, financial issues, pandemics, and other unexpected issues can occur that may forbid a political party from fulfilling its obligations or performing the promises dictated in the contract – and as a result, a political party may find itself in breach of contract. If you are beingness sued for breach of contract, what should you exercise?
Rent an Experienced Lawyer
Upon being served, defendants have just 20 days in Texas to respond by either filing an respond or some other responsive pleading. This fourth dimension can pass quickly, and to ensure you are responding accordingly to being sued, you lot should, at the very least, consult with an experienced commercial litigation attorney to review your options. If yous require an extension of time, your attorney can request an extension from opposing counsel so you can review all of your options more thoroughly. Your attorney may also suggest a diversity of strategies that can simply be pursued at the very beginning of the case, including filing a move to dismiss for lack of jurisdiction and/or to modify venue. An experienced attorney will guide you through the various legal strategies involved.
Defenses Against a Alienation of Contract Claim
There are many valid defenses one can claim when being sued for breach of contract. Researching the contract and finding potential defenses volition be vital to defending against a breach of contract lawsuit. You and your lawyer must review and research the contract and any addendums and decide potential defenses. For example, defenses to a breach of a contract caused by COVID could include:
- Force Majeure – The defense of strength majeure is based on a contractual provision agreed upon by both parties when a contract was written. Force majeure is non a commonly used defense force; however, it tin can exist used when circumstances across a political party's command absolve or delay its performance obligations and can exist used to offer other types of equitable relief.
- Deed of God – An "Act of God" in the legal sense means an inevitable accident that cannot be prevented by human actions or foresight. This affirmative defense requires that an occurrence caused directly and exclusively past the violence of nature exist the reason for the breach of contract. In Texas, in club for the court to let this defense force, prove must be presented to support the fact that the phenomenon could non have been reasonably foreseen.
- Economical Duress – Some other defense recognized in contract constabulary is "economic duress." Economic duress stems from one party threatening economic loss to some other party. One party to a contract may threaten to abolish the contract unless the other party agrees to new demands. Duress is caused because there is no reasonable alternative than to simply concur to the new contract or addendum to the contract. Although a tort or law-breaking does not need to be shown for this defense, it must still involve a wrongful act that would brand a reasonable person agree to changes nether its pressure.
- Impossibility of Performance – Some other contract defense is the impossibility of functioning. This applies when the contractual duties would exist incommunicable for anyone to perform after unforeseen events occurred that were beyond the control of either party. You may not be held liable for breaching a contract that was impossible to perform; however, be aware of any negligent acts that occurred earlier the events that made performance incommunicable. Whatsoever negligence on your part may lead to the impossibility defense not being upheld.
- Frustration of Purpose – If the main purpose of the contract has been defeated past external events not caused by either party, you may exist excused from performance entirely, even if you could still fulfill the terms of the contract. If trying to assert a frustration of purpose defense, you must have documentation of the original purpose of the contract and why that purpose has now become zero and void.
Be Prepared for Remedy
If the court does find that you have breached your contract, the other political party may be entitled to relief under the law chosen a remedy. The typical remedies for a breach of contract are:
- Damages – Paying damages to the suing party in a breach of contract lawsuit is the most common remedy. The amercement may be compensatory, punitive, nominal, or liquidated.
- Specific Functioning – If payment does non remedy the situation, the non-breaching party may seek court-ordered performance of the contract, known as specific performance.
- Cancellation and Restitution – The not-breaching party may opt to cancel the contract and decide to sue for restitution, which would return them to the position they were in earlier the breach occurred.
Experienced Texas Contract Lawyers
Founded in 1946, MehaffyWeber is a business litigation house with decades of trial experience. Nosotros have been recognized for our courtroom prowess by Sleeping room & Partners, ranked nationally as a Tier 1 Law Business firm by U.S. News & Globe Study, and have been recognized equally a "Go-To Law House" for litigation by Corporate Counsel. MehaffyWeber stands ready to assist your business with issues related to contracts and the coronavirus, so please let us know how we can assist.
Source: https://www.mehaffyweber.com/news/what-to-do-if-youre-sued-for-breach-of-contract/
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