Are you dealing with a contract dispute?

Contract law is essential to the modern business world. When a contract is breached, the ensuing dispute can be destructive to profits as well as business relationships. If you’re dealing with a breach of contract, there’s a good chance much is riding on your next actions. Many contract disputes can be resolved through mediation, but oftentimes these disputes end in a courtroom. Whether or not your contract dispute ends in litigation, having an experienced contract law specialist on your side is an invaluable asset.

What’s next when a breach of contract has occurred? Which recourse is best for you will depend on the type of contract breach you’re dealing with. The two main types of contract breach are:

  • Material Breach of Contract
  • Non-Material Breach of Contract
contract dispute

Material Breach of Contract

Sometimes referred to as a “total breach”, this type of contract breach undermines the very foundation of the contract. If a material breach has occurred, the non-breaching party can end the agreement and collect damages through litigation. The courts will consider several questions when deciding whether or not a breach of contract was material:

  • Is the non-breaching party deprived of the core of what it originally wanted?
  • Can the non-breaching party be easily compensated?
  • Will the breaching party be forced to forfeit a great deal?
  • Is the non-breaching party ready to perform their end of the contract?
  • Did the breaching party act maliciously?

If you’ve entered into a contract that has been materially breached, litigation is likely. It is essential to have an experienced attorney on your side from the start if you believe a material breach of contract has occurred.

Non-Material Breach of Contract

In a non-material breach of contract, some terms of the agreement are violated, but the core of the contract is fulfilled. The main difference in a non-material breach of contract is that the non-breaching party is still obligated to uphold their contractual obligations. However, they still may sue for damages pertaining to the breach. Contract disputes arising from non-material breaches can be resolved through mediation rather than litigation more often than those arising from material breaches. A good lawyer can make all the difference in the mediation process and help ensure a favorable outcome for all parties involved. With the help of a skilled mediator, a contract dispute arising from a non-material breach need not end the business relationship.

Whether you’re dealing with a material or non-material breach of contract, I can help you resolve your contract dispute. I have decades of experience in both mediation and litigation, and I can help you resolve your contract dispute in a fair and efficient manner.

Contact New Mexico Financial Law Today to Schedule an Initial Consultation!