When is Business Litigation a Necessary Step?

New Jersey Construction Company Sues Over Unpaid Work

A New Jersey construction company has recently filed a breach of contract lawsuit against Pohatcong Township, claiming it failed to pay work-related expenses on a renovation project at the city hall. The company was contracted to build an addition on the side of the structure where the courtroom and police station are located, labors which have since been completed.

The project was begun back in 2011, but experienced delays when the township pushed costs past its original bid.

According to the civil filing, the township demanded work that was “beyond the scope of the contract.” It also claims the township hindered the company’s progress by not vacating the worksite in time for crews to begin working, reoccupying portions of the building while construction was still ongoing, and forcing the project into postponement by failing to make timely payments.

The city has refused to pay the added costs, claiming that it owes the company no additional money for what they call a “shoddy construction” job, insisting that work has yet to be completed to the standards of the contract.

What Constitutes a Breach of Contract?

When a business agreement is not honored by one or more of the parties involved, it may be a breach of contract to which the law affords remedies. There are several different kinds of breaches, depending on the specifics of the situation. Those types are:

  • Minor breach. Also called an “immaterial” breach, this is a kind of civil case in which the claimant cannot ask a judge to force the contract to be honored, but can sue for actual damages, or money paid as compensation for loss or injury.
  • Fundamental breach. A breach of such deep impact that it allows for complete dissolution of the contract. Sometimes referred to as a “repudiatory breach.”
  • Anticipatory breach. Simply put, this is a breach that has not yet occurred, but which the aggrieved party knows will be forthcoming.An anticipatory suit allows the claimant to consider the breach immediate—and, if repudiatory, to terminate the contract and sue for damages without waiting for the infraction to actually occur.
  • Material breach. This is the most common form of breach of contract, wherein the agreement has been so severely broken that it essentially defeats the purpose of having made the contract in the first place.

Business Attorneys in New Jersey Can Assist for Breach of Contract Cases

Business people depend on contracts on a daily basis. It is simply a part of doing business in today’s society. If you find yourself dealing with a breach of contract, you will first need to determine what kind of breach it was: material or immaterial. You will also need to determine if the breach caused any actual damages.

Whether you are the claimant or the party accused of having breached a contract, a Monmouth County business lawyer can assess the circumstances and help make appropriate decisions. Some contract disputes are resolved with a simple letter, while others require litigation.

Source: http://www.lehighvalleylive.com/phillipsburg/index.ssf/2014/06/construction_company_sues_poha.html



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