To ensure that both sides meet the expectations of an agreement, they often enter into a contract in North Carolina. Contracts are often broken by things such as financial problems or simple delays. When a breach of contract occurs, you have several options for how to remedy the situation, according to FindLaw.
When either side of a contractual document fails to meet their obligations, it is called a breach of the contract. Breaches can occur when one party does not perform the specified task, does not perform the task at the requested quality or the task is not done on time. A breach of contract can often lead to financial problems for the party upholding their end of the contract.
If a contract is breached and an informal attempt at resolving the problem is unsuccessful, the next logical step is a lawsuit. The issue can be resolved in small claims court if it is under a certain amount and this amount varies per state. Another option is mediation, where an independent third-party reviews the dispute and an alternative dispute resolution is reached where both parties agree to the terms.
If a contract is breached, the party has the option to seek a remedy under the law. The most common remedies for breach of contract include cancellation and restitution, specific performance or damages. Damages may include punitive damages, compensatory damages, liquidated damages and nominal damages.
If you have been on either end of a breach of contract issue, you may need help understanding terms such as restitution or cancellation or specific performance. It may be a good idea to seek the help of a contract attorney once the issue arises.
This is intended for educational purposes and should not be interpreted as legal advice.