Breach of Contract Attorney in Chicago

Understanding Breach of Contract in Chicago

Contracts are the cornerstone of life and businesses in Illinois. Individuals need them to lease and purchase residences and vehicles, while businesses use them to interact with other businesses as well as their clients, customers, or consumers. Each party to a contract—whether oral or written—enters into it for mutually beneficial reasons. When breaches occur, disputes can arise. In some cases, the solution may seem straightforward, while in others, the breach is more problematic. Whether or not you are the party that breached the agreement, settling the matter as soon as possible is in everyone's best interests.

For individuals and businesses navigating contract law in Chicago, the legal landscape can prove intricate and unique. Chicago-specific contract considerations include understanding local legislative nuances and court procedures. Engaging a contract lawyer familiar with the city's jurisdiction can empower you with crucial advantages, ensuring your interests are safeguarded effectively.

Airdo Werwas LLC prioritizes clients' interests and acts promptly to secure those interests. Contact us today online or at (312) 506-4450 to schedule a consultation.

Breach of Contract & Non-Performance in Chicago

A contract is a legally binding agreement between two parties, where one party offers to do something—for example, build a new house—and the other party accepts the offer and promises to do something in exchange—for example, pay money.
We deal with contracts regularly in our daily lives and within a business context. Contracts in terms of consumers are used, for example, when:

• Setting up a mobile phone plan
• Renting an apartment
• Engaging a plumber to do repairs
• Buying a house
• One business buys or merges with another
• Hiring an employee
• Taking a loan from a bank

Businesses utilize contracts, for example, when:

• Setting up a commercial lease
• Entering into a licensing agreement
• Entering into a purchase agreement
• Hiring new employees or contractors
• Creating other types of business agreements, such as partnership agreements, indemnity agreements, non-disclosure agreements, etc.

If one party fails to perform their obligations under an agreement without a reasonable excuse, the other party may be able to sue them for breach of contract to either enforce the contract or recover damages. A breach of contract attorney in Chicago can help you determine whether legal action is appropriate and guide you through the process.

To pursue this, the contract must be valid—it must be legal, and both parties must have the capacity to enter into it. A contract is also usually written, although a breach of contract can apply to a verbal/oral agreement in certain situations.
Where a party sues for breach of contract, the non-performing party is called the defendant, and the wronged party is called the plaintiff.

In the bustling economic environment of Chicago, businesses frequently navigate complex contracts that require careful legal interpretation. It is vital to have a structured approach in assessing these agreements, including thorough reviews and risk assessments. A business lawyer in Chicago can provide invaluable assistance in preemptively identifying potential vulnerabilities in your agreements and offering strategic advice tailored to your specific needs.

Types of Breaches of Contract in Illinois

Not all breaches are alike in Illinois, and as such, not all breaches may be resolved through litigation. The law categorizes breaches of contracts based on their seriousness and timing.

Material vs. Minor Breach

Material breaches occur when a defendant fails to perform an important obligation under the contract, causing the contract to be “irreparably broken.” A material breach makes it impossible for the other party to perform their obligations under the contract.
Some contracts explicitly define a material breach. If the contract is silent on the issue, a court looks at factors such as whether the defendant acted in bad faith and whether the plaintiff can be compensated for their loss. An example of a material breach is when a buyer fails to pay for a product they received.
In contrast, a minor breach does not materially disadvantage the other party, and the contract can still be substantially performed. For example, the late delivery of a product does not go to the core of the agreement and is likely a minor breach.

Understanding the distinction between material and minor breaches is crucial for deciding on a course of action. In the context of business operations in Chicago, knowing these differences helps in aligning contract management strategies with business objectives, allowing for informed decision-making on the best possible legal recourse.

Actual vs. Anticipatory Breach

An actual breach occurs when one party fails to perform a term under the contract.
Anticipatory breaches, on the other hand, occur when one party notifies the other that they will not comply with a term of the contract. This allows the other party to claim a breach of contract, even though it has not yet happened.

In a vibrant city like Chicago, anticipating potential breaches before they happen can save businesses time and resources. Consulting with legal professionals who understand the local contractual landscape can provide advanced notice on contractual issues, leading to the development of proactive measures in handling anticipatory breaches.

Remedies for Breaches of Contract

Remedies exist to resolve contract breaches. The appropriate remedies depend on the facts, circumstances, and the state law governing the contract. More than one remedy may apply in your unique case. Potential remedies for a breach of contract include, but are not limited to:

• Compensatory damages, which are the most common type of remedy, cover the actual loss caused to the non-breaching party. These damages include (1) expectation damages, where the non-breaching party recovers monetary damages based on the contract itself or market value; and (2) consequential damages, where the non-breaching party recovers indirect damages for reasonably foreseeable harm resulting from the breach.
• Punitive damages are the least common type of remedy but are meant to punish the breaching party who acted fraudulently, maliciously, or willfully, and to prevent similar breaches in the future.
• Specific performance involves a court order requiring a defendant to perform an obligation under the contract.
• An injunction is a court order requiring a defendant not to do something, either temporarily or permanently.
• Rescission, which occurs when the court cancels the parties' obligations under the contract, theoretically restoring them to their original positions.
• Restitution, which is a court order requiring the defendant to pay the plaintiff the amount agreed to in the contract, often involves the return of money or property.

The remedies available in your case depend on the jurisdiction, type of breach, specific terms of the contract, and circumstances in which the contract was made.

The diverse economic environment in Chicago offers an opportunity for businesses to employ creative approaches to dispute resolution. Engaging with a contract lawyer in Chicago familiar with Illinois law can assist in evaluating the available remedies that align best with a business’s strategic objectives.

Possible Defenses to Breaches of Contract

It is important to know the possible defenses an individual or business may have when accused of breaching a contract. If you are the party to breach the contract, contact Airdo Werwas, LLC to understand how any one of these or other defenses may apply to your case.
If you are the non-breaching party, knowing these defenses can help you understand how the other party may argue their case. This knowledge will provide insight on how to move forward to uphold the terms and conditions of the contract or to come to another resolution, even if that means litigation.

Defenses available to a party accused of breaching a contract include, but are not limited to:

• Fraud, where the plaintiff intentionally misrepresented material facts about the contract, making it fraudulent and therefore invalid.
• Invalid contract, where the contract does not meet the criteria of a valid contract (e.g., it may lack consideration).
• Duress, where the breaching party was forced to enter into the contract against their will.
• Incapacity, where the breaching party did not have the necessary capacity to enter into the contract in the first place, for example, because they were a minor at the time.
• Unclean hands, where both parties are at fault for the breach of contract.
• Mutual mistake, where the contract contains a mistake, different from what both parties intended.
• Illegality, where the contract was an agreement to do something illegal, such as commit a crime.

Regardless of whether you are the breaching or non-breaching party, you should speak to a Chicago breach of contract lawyer at Airdo Werwas, LLC to see what defenses may apply or how those defenses may be used in your situation. Airdo Werwas, LLC will assess your facts and circumstances and can advise a plan or strategy for moving forward accordingly.

Frequently Asked Questions

What Should I Do If I Suspect a Breach of Contract in Chicago?

If you suspect a breach of contract in Chicago, it's crucial to act promptly. Start by reviewing the original contract to fully understand its terms and conditions. This involves scrutinizing clauses related to termination, breach, and remedies. Document any evidence of the breach, including emails, letters, and witness accounts. Immediately engage a breach of contract attorney in Chicago, such as our team at Airdo Werwas LLC, to evaluate your situation. They can help you understand the local legal landscape, including any specific procedural rules or venues relevant to Chicago courts.

Your contract attorney can guide you through initial steps, which may include sending a formal notice of the breach to the other party. This not only signifies your awareness but also requests resolution or negotiation. Understanding local laws related to contract breaches will arm you with the necessary knowledge to navigate potential court proceedings effectively. Chicago's contractual environment has unique elements, making it all the more essential to work with knowledgeable legal professionals who can leverage local insights and align strategy with statutory requirements.

How Can an Attorney Assist Me with a Breach of Contract in Chicago?

Attorneys play a pivotal role in breach of contract cases, particularly within a complex market like Chicago. The primary role of an attorney is to interpret the applicable contract law, identify the specifics of the breach, and formulate a pragmatic legal strategy. At Airdo Werwas LLC, our contract lawyers can provide crucial insights into Chicago's legal infrastructure, ensuring that client cases are handled efficiently while focusing on favorable outcomes.

Attorneys assist from the initial contract assessment through the gathering of evidence and potential negotiations with the opposing party. In Chicago, understanding specific court preferences and procedures can be highly beneficial in positioning your case for success. Moreover, experienced attorneys can anticipate potential defenses from the other party and prepare counterarguments. Leveraging extensive local knowledge can also enhance negotiation tactics, which can ideally lead to out-of-court settlements, saving you both time and resources. Choosing a breach of contract attorney familiar with Chicago's legal climate ensures that your interests are effectively protected throughout the process.

Are Oral Contracts Valid in Chicago?

Oral contracts can be valid in Chicago, provided they meet the fundamental criteria required of any contract: offer, acceptance, intention, and consideration. However, proving the existence and terms of an oral contract can be challenging compared to its written counterparts. Illinois law recognizes oral contracts in many circumstances, but certain agreements must be in writing to be enforceable, in accordance with the Statute of Frauds. These include contracts for the sale of land, promises to pay another person's debt, or any agreement that cannot be performed within one year.

When relying on an oral contract, it's advisable to maintain comprehensive evidence of the agreement through documentation such as text messages, emails, and any corroborative witness testimony. In Chicago, it’s beneficial to consult a breach of contract lawyer who can appraise your situation and guide you on the enforceability of your oral contract, considering local legal standards. Leveraging Chicago-specific knowledge in these circumstances is paramount, as it ensures that any action taken aligns with regional statutory obligations and enhances the likelihood of an enforceable resolution.