When an individual or business believes that a counterparty in a contractual relationship has violated the terms of the agreement, they may assert a breach of contract claim. If you or your business has or faces a breach of contract claim in Wisconsin, you’re probably concerned about how you can protect yourself and your interests. Let’s explore what constitutes a breach of contract under state law, and what steps you can take in pursuit of a positive resolution to the allegation.
What Constitutes a Breach of Contract Under Wisconsin Law?
A party breaches a contract when they fail to perform one or more of their obligations under the terms of a legally binding agreement. The primary types of breaches of contract are:
- Minor breaches: A minor breach occurs when a party violates some non-core provision of a contract, and the breach does not frustrate the essential purposes of the agreement. When a minor breach happens, the non-breaching party may still have to continue performing their obligations under the contract, although they can pursue legal action to recover losses caused by the breach.
- Material breaches: A material breach occurs when a party fails to fulfill an essential term of a contract, undermining a core purpose of the agreement. Material breaches allow the non-breaching party to cease performance and pursue legal action for the violation.
- Anticipatory breaches: An anticipatory breach occurs when a party indicates that they will not perform a contractual obligation before the performance deadline. Even though the repudiating party has not technically breached the contract, the repudiation allows the other party to treat the contract as breached.
Remedies for a Breach of Contract
Non-breaching parties may pursue various forms of relief for a breach of contract through a settlement or legal action. Potential remedies in a breach of contract case include:
- Monetary compensation, including for compensatory damages (losses directly resulting from the breach), consequential losses (such as lost profits or damage to business reputation), or liquidated damages (if permitted by the contract)
- Specific performance, which requires the breaching party to perform their contractual obligations (usually under a court order)
- Recission, which cancels the contract and provides other relief to restore the parties to their pre-contract position
- Reformation, which corrects issues caused by scrivener’s errors or the parties’ mutual mistake
First Steps to Take If You Suspect a Breach
If you’ve been accused of breaching a contract, you can take the following steps to protect yourself and your rights:
- Review the contract to confirm each party’s obligations and rights, including any notice-and-cure provisions.
- Collect relevant information and documents, such as written correspondence, invoices, work orders, and status reports.
- Address concerns with the counterparty, as many circumstances allow parties to resolve contract disputes informally without escalating to legal action.
You should also consult legal counsel as soon as possible to better understand your rights and obligations and to start preparing your legal defense.
Defenses to Breach of Contract Claims
Parties who allegedly breached their contractual obligations may assert various defenses against a breach of contract claim, such as:
- Lack of a valid, enforceable contract
- Ambiguous contract terms
- Impossibility/impracticability of performance
- The other party materially breached the contract first
- Mutual mistake/misunderstanding
Contact a Contract Attorney in Madison Today
Whether you have a breach of contract claim against a counterparty or another party has asserted a claim against you, taking the right steps now can help you protect your rights and interests down the road. Contact Casper Mehlos Law Group, LLC today for an initial consultation with a contract litigation lawyer in Madison, WI. We’re proud to serve individuals and businesses in Sauk, Dane, Rock, and Columbia counties, and we look forward to discussing your matter in detail.
