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We can isolate some of the positive factors that will help you win a breach of contract case and negative factors that will contribute to losing it. Here are a few tips—given the understanding that each case is different, that our past success does not guarantee a future result and that by this writing we are not creating an attorney-client relationship with you.
Collect relevant information. Before you can decide what to do, you need to collect the relevant information and mentally digest it, preferably with a lawyer.
- If your contract is in writing, read it. You are one of at least two parties to the contract. What were you supposed to do? What was your fellow contracting party supposed to do? Who hasn’t done what and why? Do the same analysis if your contract was oral and collect any writings that help prove what the terms were.
- Collect the correspondence leading up to the contract and put it in chronological order. Do this especially if the contract isn’t clear on some relevant point or if one of the parties might claim that the contract was signed based on and because of lies told by the other party. Jot down for your lawyer the chronology of events not recorded on paper and any special customs of your industry; talk to other employees who participated.
- Collect the correspondence exchanged after the contract was signed. Contracts can be modified by agreement. Was it? One party can be prevented (legal term: estopped) from relying on a contract term depending on what was said or done. Did a party ‘waive’ a contract term by intentionally relinquishing its right to insist on performance? Analyze oral conversations not recorded in writing to determine if the contract was modified or whether one party or the other waived a key term or can be estopped from relying on it.
- Analyze the parties’ course of performance in this project, and if similar in prior projects. If you didn’t comply, why? Hindrance or the failure to perform by your opponent, unforeseen problems (strikes, weather, war, etc.) or the fault of someone else (supplier or subcontractor) may give you a defense that justifies non-performance or the ability to shift the responsibility for a contract breach to someone else. If you complied but the other party didn’t, ask the same questions in reverse. Collect the relevant documents and discuss matters with your colleagues and employees.
- If you are defending a claim, review any and all insurance policies.
- Record any statements from your own employees or others.
- Destroy any records.
- Write any correspondence relating to the dispute.
- You owe your opponent more money than he or she owes you.
- You don’t want to turn over relevant documents to your opponent’s lawyer or they are already shredded.
- You fired all of your employees who are knowledgeable about the dispute.
- You lack the time to educate your lawyer about the dispute, retrieve relevant documents, or give a deposition.
- You think that all witnesses tell the truth.
- You regard yourself as superior to jurors or the judge.
- You believe that just by filing the lawsuit, you will get a settlement.
- Your opponent lacks the money to pay a judgment.
- Your company or key witnesses must continue to do business with your opponent or his or her allies.
- The cost of the lawsuit is more than you would benefit with total victory.