When a person or a business negotiates and then comes to agreement and forms a contract with another person or business, it is expected that all involved will honour the agreement. When there is a failure to honour the agreement, a breach of contract lawsuit may arise; however, a party to a contract may be blinded by a subjective perception or subjective interpretation that a contract was breached; and accordingly, before starting a lawsuit, especially where significant costs penalties may be awarded against you for failing to win lawsuit, you, or any other party to a contract, should carefully assess the likelihood of success before commencing legal action.
When attempting to determine if a contract was legally breached, the first step is to determine whether a binding contract even existed. Of course, there may be a situation where people negotiated, seemed to agree to various terms, shook hands, signed a document, among other things; however, what legally constitutes as a binding and enforceable contract involves much more than just outward appearances. To determine whether a legally binding and enforceable contract actually existed and thereafter determine if the contract was improperly breached a thorough review is required.
As outlined in brief above, a breach of contract case may be much more complicated than first appears. Prior to starting a lawsuit, it is wise to review the situation carefully and obtain legal advice based on the merits of the case and likelihood of success. Preparing a strategic gameplan is also imperative as advantages, or disadvantages, may arise as a case moves forward, especially as there are almost always unexpected surprises during the course of litigation.
DH Legal provides litigation services for contract law disputes in Toronto, Kingston, Mississauga, Richmond Hill, Vaughan, Waterloo, and the Greater Toronto Area.