Breach of Contract in Arizona- How Do You Deal with the Legal Fallouts?
If two or more people/entities sign a contract (legally binding document) then they have to obey the terms and conditions applicable to them as stated in the document.
If these terms are not followed by one or more parties, then it can be said that the contract has been broken by the particular person/entity. Legally in Arizona, it is termed as breach of contract. There are several remedies for breaching a contract, and these solutions differ from one case to another.
For contesting for or against a breach of contract, there must be enough evidence for prove the enforceability of the contract, and an expert contract law attorney in Arizona can help you here. If you have experienced damages because of breaking or breaching of a contract, then you must get in touch with breach of contract attorney in Arizona.
Normally, when a contract is signed, the cases of reimbursements and remedies are agreed upon already. An experienced lawyer who has dealt such issues will greatly increase your chances of receiving compensations in case the contract you signed was breached by another involved party.
Arizona Breach of Contract Law Essentials
Arizona has enacted UCC (Uniform Commercial Code) that gives unique protections to consumers. Not every contract is as simple as the example stated above. Many contracts are complicated, with lot many terms and conditions and factors in play to determine if the offers are enforceable or not. Contracts must be thus formed by competent parties, which assent to the agreements in the contract and it is best to thus, have a written contract made than a verbal one.
Under ‘four corners rule’, if there was a fraud, then the court shall allow the party with evidence a prior negotiation, before getting into court proceeding. The rule is for written contract and a breach of oral contract, relevant arguments are admissible in court. Arizona has adopted the rules from Statue of Frauds.
Some contracts have to be in written form such as those to be completed in one year of contract signing, contracts that define sale of goods of more than $500, contract for guarantee of debt by third party, contacts relating to real property, all such must be considered in written document. When one breaches a written contract, the affected party can seek compensation of attorney fees. The remedy is based on A.R.S. 12-341.01.
Statute of Limitations for a Breach of Contract in Arizona
There could be exceptions for general rules and the court will consider equitable tolling, but here are some of the statues of limitations for Arizona breach of contract.
- Breach of written contract – 6 years (A.R.S. 12-548)
- Breach of oral contract – 3 years (A.R.S. 12-543)
- Breach of contract related to sale of goods as given in UCC – 3 years as per A.R.S. 47-2725(A) and A.R.S. 12-544(4)
Here a brief breakdown of remedies and damages of a breach of contract in Arizona:
- Consequential and Incidental Damages: When the parties that signed the contract have knowledge about the potential losses at the time when the contract was formed, such losses account as consequential and incidental damages.
- Punitive Damages: The violator has to provide monetary compensation to the offended. The payment for damages is for behavioural misconduct to the contract’s statutes.
- Liquidated Damages: The contract lists a set of damages, which can be considered as a breach, and thus liquidated damages are those stated terms.
- Reimbursement: The violated entity/person can have the right to compensatory damages that reimburses the losses and costs caused due to contract breach. The reimbursement may account for property loss, attorney fees, and other monetary losses.
- Reformation: The contract terms are altered to reflect the interests of the parties involved.
- Rescission: Here the contract is cancelled. Both the parties are then excused from performances ahead and money given in advance (if any), is returned.
- Specific Performance: The court order which asks for a performance as specified in the contract has a remedy, but it is rare, except in the cases of unique property, real estate transaction, as the court does not wish to be involved in monitoring the performance.
Breach of Contract Attorney Can Help You with Any of the Following
- Disputed related to commercial, partnership, employment, shareholder and business
- Negligence claims which may also include breach of fiduciary duty
- Purchase and sale of businesses along with merger disputes
- Breach of stock options contracts
- Contracts (written and oral), executive contracts, severance Agreement, employment contracts, non-compete agreements etc
- Bad faith allegations, which may involve conflict of interest and misrepresentation
What You Can Do in Defence of a Breach of Contract?
While you can get complete help in your favour when someone else breaches a contract, the attorney can also review your case to defend you for breaching the contract legally. A contract can be breached under clauses such as vagueness and ambiguity of the contract, mutual mistake of fact, undue influence, duress, illegality, fraud, contracts which violate public policy, unconscionability (procedural and substantive), incapacity on grounds of minor aged person, sanity etc.
Talk to a Contract Law Attorney in Arizona
Whether you are concerned about someone breaching a contract or you are going to enter a contract, it is advisable to take help of a professional attorney, who can help you out with every detail.
Schedule a consultation with Arizona contract law attorney today to discuss your legal queries regarding a contract.