What to Do If You’re Sued for Breach of Contract

Contracts are a normal part of business and are designed to ensure everyone keeps up their end of the bargain. However, there are occasions when it becomes impossible to abide by the rules of the agreement, and one party may sue the other for breaking a contract. That is when you need a contract lawyer. 


Find a Trusted Contract Attorney 

The first thing you should do is contact a trusted contract attorney to discuss the situation. Depending on the laws in your state, you may have only a limited number of days to respond to the filing. The sooner you discuss the situation with your contract lawyer, the better. If you need to file an extension, your attorney can help do that.  


Some Defense Strategies 

An experienced business lawyer will help you develop a strategy to deal with the lawsuit. You may have multiple options available to you. One route may be to file a motion to dismiss if the case warrants it. You and your attorney can devise a strategy that works for you. 

Some other strategies available include: 

  • Act of God – “Acts of God” refer to something beyond your control which made it impossible for you to comply with the law. An example might be a flood, storm, or another weather-related incident.  
  • Force Majeure – Another similar strategy that is not used often but may be written into contracts is Force Majeure which refers to circumstances beyond your control that led to your breach of contract.  
  • Economic Duress – If one party threatens financial loss to force the other party to agree to new demands, it is called economic duress.  
  • Impossibility of Performance – The impossibility of performance defense insists that no one could possibly comply with the contractual duties because of something that occurred that was beyond your control. It does not apply to negligent acts that made the performance impossible.  
  • Frustration of Purpose – If something occurs to eliminate the purpose of the contract, even if you could fulfill the terms, you would not since some external event defeated the purpose. You must have documentation proving the event and purpose that was defeated.  


Breach of Contract Remedies 

You may lose in court if you breach a contract without a good defense. Some of the consequences may include: 

  • Damages – The court may order you to pay damages to the other party if you are found guilty of breaking a contract.  
  • Court-Ordered Performance – The suing party may also request that the court order you to comply with the contract or some portion of it.  
  • Cancellation and Restitution – The party suing you may choose to cancel the contract but sue you for restitution damages. 


Breach of Contract Help 

If you find yourself in a situation where you are being sued for breach of contract, we can help. Contact Haber Law today. We are highly experienced in all areas of business law.