A contract dispute occurs when one or both parties disagree with the terms and conditions of a contract. Sometimes a dispute happens during contract negotiations. However, most times it happens after the contract has been signed and one party fails to meet the terms of the contract. In order for a contract to be valid, all parties involved need to fully understand and accept all the conditions. If understanding and acceptance are not mutual, then a contract appeal might be necessary.
You have the right to be compensated for any financial losses you incurred as the result of a contract breach by your business partner or other business relationship. If you are involved in a contract dispute, you should seek legal advice from an attorney who specializes in contract law.
You’ll need the assistance of a legal expert to establish the facts of your case and prove the other party is in violation of the contract terms. Before the courts determine the amount of compensation due, you must first confirm that a valid contract existed, that you attempted to fulfill the terms of the contract, and that the defendant violated the agreement.
Contract Disputes Act of 1978
The Contract Disputes Act of 1978 (CDA) stipulates that government contract disputes must follow uniform procedures. The CDA’s litigation procedure is open and final, assuring fairness and predictability in the process.
The contractor and the government are urged to engage in reasonable negotiations regarding claims and other issues at the lowest possible level, through alternative dispute resolution. The CDA’s litigation procedure may then be activated if this is not possible or does not achieve the intended consequence.
According to 41 U.S.C. § 7103(a), the contracting officer, who is a government employee, issues a Contracting Officer’s Final Decision, which is based on the facts of the situation. The contractor may then appeal to the Board of Contract Appeals or the United States Court of Federal Claims if he or she disagrees with the decision that has been made by the contracting officer.
A decision by the first forum may be appealed to the United States Court of Appeals for the Federal Circuit, which is an intermediate appellate body. The Supreme Court of the United States is the ultimate appellate authority in a CDA issue.
Common Types of Contract Disputes
When a contract includes an accepted offer and some form of payment for the products or services procured, then it can be considered valid. Disputes might occur in a variety of areas, including, but not limited to, the following:
- Offer and acceptance
- Technical terms
- Contract drafting and review
- Coercion or fraud
- Breach of contract
Legal Remedies for Contract Disputes
Courts have the power to grant equitable relief, which can be used as a remedy for wrongs like unfair practices and damages that come as a result of contract disputes. However, Texas breach of contract claims can be complex and it is in your best interest to consult with a Texas business litigation attorney to better understand your options and the equitable remedies.
You may get compensatory damages if you prove your case, but they will be decided based on what the contract stated regarding damages, the subject matter of the contract, and what damages you suffered as a result of the broken agreement. What are the remedies available?
An indemnity is a sum of money that the injured party will receive if there was a breach of contract. This might be decided by a contract clause stating that if the assumed breach occurs, the indemnified party will be reimbursed for any damages caused.
Credit Reputation Damage
In contract dispute situations, the court may order compensation for any damages caused to your credit score as a result of the defendant’s actions.
This is an award to reimburse you for any losses you may have incurred as a result of the contract breach.
When you are involved in a contract dispute, even if you are still in the negotiation process or if there has only been a minor breach, you’ll want an experienced legal team by your side. Contact the Kelly Legal Group law firm and let our Texas business litigation lawyer fight for your rights. Call us right now at (512) 505-0053 to set up a free consultation.