A breach of contract is a situation in which a party to a contractual agreement fails to abide by one or more of its terms. When a party to a contract fails to fulfill its contractual obligations, the other party may file a breach of contract claim in court. In this article, we explain how to deal with a breach of contract in Georgia.
Enforceable Contracts in Georgia
When a party fails to perform as required under a contract, the other party may file a lawsuit against the breaching party for compensatory damages or specific performance. However, in order to sue a party for breach of contract, the contract must be legally binding and enforceable.
In Georgia, a contact may be either written or oral. However, in order to be enforceable, a contract must meet the following requirements:
- The agreement must address all important conditions and terms
- Both parties must agree to the contract’s terms
- All parties must have legal capacity to enter into the agreement
- Each party must give something to the other party as part of the contract
- Each party must enter into the contract willingly
- The subject matter of the contract may not violate any federal or state law
Addressing a Breach of Contract
When one party to a contract fails to abide by its terms, the other party may sue for breach of contract. In Georgia, there are three primary remedies for a breach of contract:
- Recovery of consequential damages
- Rescission
- Specific performance
Damages
When a party breaches a contract, the other party may be entitled to damages. In Georgia, recoverable damages must be actual, measurable, and proven. Common damages available for a breach of contract in Georgia include:
- Loss of income or revenue
- Incidental damages
- Other damages established as by the contract
Rescission
As noted above, rescission is a possible remedy for a breach of contract in Georgia. Rescission refers to the cancellation of a contract. When one party breaches a contract, the other party may rescind, or cancel, the contract. This relieves the non-breaching party of its obligation to perform under the contract.
Specific Performance
Finally, when a party fails to perform its obligations under a contract, the other party may request specific performance. Although courts are often reluctant to order specific performance, this remedy is available when damages would fail to adequately compensate the non-breaching party for its business losses or when damages cannot be adequately measured.
Contact a Georgia Business Litigation Lawyer
If you are dealing with a breach of contract issue in Georgia, you need an experienced Georgia business litigation attorney on your side. At Griffin Durham Tanner & Clarkson LLC, our business litigation lawyers have years of experience helping our clients resolve complicated contract disputes. When you come to us for help, we will do everything in our power to ensure that your contract dispute has a successful resolution. Please contact us today to schedule a free consultation with one of our experienced attorneys.