When one side of a contract doesn’t follow through on what they agreed to do, you may have a breach of contract claim under Wisconsin law. Should you push for a resolution outside of court? Is it better to negotiate on your own, or take legal action? Because every situation is different, an experienced contract lawyer in Madison can help you determine the best option for you.
What Is a Breach of Contract?
A breach of contract happens when one party fails to perform a required duty under a valid contract. Common failures include missing deadlines or delivering defective work. To bring a breach of contract claim in Wisconsin, you generally must show four things:
- A valid contract existed under Wisconsin law
- You held up your end of the contractual obligations
- The other party failed to meet its obligations
- You suffered damages as a result
Written vs. Oral Contracts
Wisconsin recognizes both written and oral contracts, but written agreements are far easier to enforce. Some contracts must be in writing to be valid under the statute of frauds, including agreements involving real estate, contracts that can’t be completed within one year, and certain sales of goods over $500.
If your agreement was oral, enforcement may still be possible, but it’s much harder. Most oral contract cases depend on credibility and what other evidence is available to support your claim. Documentation, like emails and payment records, can help establish what the parties agreed to.
Material vs. Minor Breaches
Not every breach justifies tossing out a contract or filing a lawsuit. Courts typically consider whether material or minor breaches are at stake. A material breach goes to the heart of the agreement and defeats its purpose. For example, failing to deliver a product (the main reason for a contract) may qualify. A minor breach involves a less serious deviation, such as a short delay that doesn’t cause significant harm.
A material breach may allow you to stop performing under the contract, while a minor breach usually doesn’t. An experienced contract attorney can help you understand the differences and what your obligations may be.
Common Remedies for Breach of Contract
The most common remedy for breach of contract cases is money. Courts typically award damages meant to put you in the position you would’ve been in if the contract had been performed. Depending on the specific contract, those damages may include:
- Direct losses tied to the breach
- Lost profits (that can be proven with reasonable certainty)
- Costs incurred because of the breach
In limited cases, you may seek “specific performance.” This remedy asks the court to order the other party to carry out their contractual duties. This remedy often applies to unique items or real estate, where money alone doesn’t fix the problem. For example, if one party tries to back out of selling their home, specific performance could require them to fulfill their end of the agreement by selling the property as agreed upon.
Time Limits for Filing a Claim
Breach of contract claims are subject to strict deadlines. In Wisconsin, the statute of limitations for most contract actions is six years. Missing these deadlines can bar your claim entirely, even if it’s obvious the other party is at fault. As soon as a breach occurs, contact a contract lawyer to help you understand your legal options and what to do next.
Many contracts include provisions requiring mediation or arbitration before filing a lawsuit. Even without those clauses, your lawyer can help you negotiate early and potentially save time and money. Demand letters are a common way to start the process. A good demand letter will outline the breach and set a deadline for correction or payment. In some cases, that alone can end the dispute.
Learn More from a Madison, Wisconsin Contract Attorney
The contract attorneys at Casper Mehlos Law Group, LLC represent business and individual clients in Madison and throughout Wisconsin. Contact us today to learn more about your options.
