Contracts are the foundation of personal agreements, professional relationships, and business transactions in various sectors, including construction. If a party who enters into a construction contract fails to adequately fulfill their contractual responsibilities, an aggrieved party might seek legal relief for a possible breach. Learn about a breach of contract in construction, and discover how a seasoned Tennessee, South Carolina, and North Carolina contract law attorney can assist contractors and homeowners with understanding their legal options and rights concerning contractual breaches and navigating these legal disputes; call King Law Offices today at (888) 748-KING to organize an initial discussion with our team.
What Is a Breach of Contract Law in South Carolina?
According to the Legal Information Institute (LII), a contract refers to an agreement made between two or more parties that creates legally enforceable mutual obligations. Valid contracts must contain an offer (a proposal to deliver goods/services made by one contracting party to the other, which outlines the agreement’s terms), acceptance of the offeror’s terms, consideration (an item of value exchanged between the parties as part of the contract, such as money), and an intention by both parties to establish a legally enforceable agreement. In South Carolina and Tennessee, a contractual breach takes place when a party does not fulfill the terms and commitments outlined in the contract.
With regard to construction contracts, a breach may occur if a party fails to complete a project to an acceptable standard, misses deadlines (in terms of starting and finishing the project), refuses to pay/delays payments, or uses low-quality materials. Some of the reasons why a breach might take place include financial difficulties, contract term disputes, unforeseen circumstances, and an unwillingness to carry out contractual obligations.
What Are the Damages for Breach of Contract in Construction?
Several legal remedies are available to contractors, homeowners, and other aggrieved parties who enter into construction contracts and experience a contractual breach. These include the following.
Damages
A common legal remedy, damages refer to monetary compensation owed to the non-breaching party by the breaching party and can come in several forms. One type includes compensatory damages designed to recompense the non-breaching party for the actual losses they have sustained. Others encompass punitive damages, which punish a party for breaching a contract vindictively, egregiously, or intentionally, and liquidated damages; these refer to damages specified in an agreement for breaches that incur losses that are challenging to calculate.
Rescission
Rescission terminates each party’s contractual rights and tries to place all parties in a similar position to before they entered into the contract. Often used in legal disputes involving contractual breaches, this remedy does not involve the parties continuing to work with one another.
Reformation
Unlike other remedies, reformation does not entail one party paying the other or forcing both sides to fulfill the terms of the agreement. Instead, it involves reinstating the agreement but changing the parties’ duties and obligations.
Specific Performance
Specific performance is a remedy that forces each side to fulfill the terms of the agreement as if the disagreement did not happen. In construction contracts, the courts may opt for this remedy if the project involves using custom materials or a contracting party’s specific skills. Generally, however, the courts may avoid using specific performance unless absolutely necessary since a breach may mean the relationship between the contracting parties is irretrievably broken.
Find out more about what a breach of contract in construction is, and explore the legal remedies for homeowners and contractors in greater detail. Call King Law Offices today to schedule a confidential discussion with a North Carolina, South Carolina, and Tennessee contract law attorney.
What Are the 4 Types of Breach of Contract?
The two primary types of contractual breaches are material and minor breaches. Material breaches refer to the failure by one party to complete important contractual obligations resulting in the irreparable breaking of the agreement, such as not paying a contractor for their services, abandoning the project, or using inferior building materials that cause significant structural issues; contracts may outline what constitutes a material breach, but if it does not, a court may determine this by considering factors such as whether the defendant acted in a dishonest, fraudulent, or deceitful manner and whether the non-breaching party has suffered losses. By contrast, minor breaches do not cause a significant disadvantage to the non-breaching party and still allow the performance of the contract’s terms (for instance, minor delays in a construction project).
Another type is an actual breach, which is when a party outrightly fails to perform the contract’s terms. Finally, there are anticipatory breaches; these arise when a party informs the other party of their intention not to comply with one or more of the contract’s terms, potentially allowing an aggrieved party to claim that a breach has occurred before it has happened.
Contact a South Carolina, North Carolina, and Tennessee Contract Law Attorney To Learn More
The parties involved in construction projects can avoid disputes concerning contractual breaches by using unambiguous and clear language in a contract, ensuring the contract includes dispute resolution and performance timeline provisions, and communicating openly with one another. If a party believes another has breached the contract, they might consider contacting an experienced South Carolina, North Carolina, and Tennessee contract law attorney for assistance in obtaining legal remedies. Contact King Law Offices today at (888) 748-KING to understand more about a breach of contract in construction and the potential legal options available to homeowners and contractors.