When a binding agreement is not honored, this is considered a breach of contract. In this brief article, we will explore some scenarios in which a construction professional may be able to step away from a contractual agreement that another party has violated. Remember, the best way to avoid breach of contract situations is to consult a construction attorney to review construction contracts in Denver. At Cotney Construction Law, our Denver contractor lawyers draft, review, and revise construction contracts and employment manuals for clients.
Understanding Breach of Contract
Before we delve into examples of breach of contract, it’s important to note that contractors involved in this type of situation should always consult a Denver contractor attorney before they take any type of action. In some cases, if the other party breaches the contract, you may still be obligated to fulfill your role on the project.
How Does Breach of Contract Occur?
There are several ways a breach of contract can occur. Generally, a breach of contract falls into three types of cases in which one party doesn’t honor the contract:
- Refusal to Perform Tasks: If a contracting party refuses to perform their responsibilities detailed in the contact, this is a breach of contract.
- Failure to Abide By the Agreement: If a professional deviates from the agreement in some manner, this is another example.
- Prevention: If a contracting party deliberately prevents the other party from completing their responsibilities under the contract, this is the third type of breach.
Related: 7 Sins of Construction Contracts
What Do I Do If the Other Party Breached the Contract?
The breach must be serious and material in nature in order to void the contract. In other words, a minor breach does not warrant the party affected by the breach to terminate the agreement. Just because one party is not abiding by their part of the contract doesn’t mean it’s considered a breach of contract in a legal context. If you entered an agreement with another entity and you believe that they have seriously breached the contract, an experienced construction attorney can review the contract and assess your potential case.
Exiting a Contract
If one party willfully and seriously breached a contract, this could result in the affected party being able to exit the contract (after consulting an attorney). There are other cases in which a contract can be considered null and void due to the actions of a contracting party. For example, if you entered a contract with another party, you could break the contract if the contract was founded on some form of deceit or misrepresentation. Before you legally enter any contract, consult a construction attorney that can review contracts in Denver.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.