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What do you need to prove a breach of contract?

On Behalf of | Mar 13, 2023 | Corporate & Business Law

When you contract with another entity for goods or services your company needs, the last thing you expect is to run into issues. Even with a written agreement, sometimes a business will break the contract, which may result in your company suffering.

If your contact has provisions for handling a breach of contract, you should proceed under those guidelines. However, to do so, you need to prove a few things to help your case before a judge.

Is your contract binding?

Your first action is to return to the contract and ensure it is binding under Indiana law. Ensure the contract has the following:

  • The goods/services you are exchanging
  • The material/financial terms of the exchange
  • The signatures of the parties accepting the agreement

One thing to check is the status of the signatory executing the contract on behalf of the other party. This person should have the legal authority to sign the document accepting the agreement.

Did you fulfill your side of the agreement?

You need to have proof that you upheld your end of the contract terms. For instance, if the contract called for you to pay for goods and you did, but never received the items as set out, then you fulfilled your side of the agreement.

Did you suffer a loss?

Finally, you have to show that your business suffered a loss as a result of the breaching party’s action or inaction. This can come in the form of financial losses or material losses. If the other company did not produce the goods you paid for, you might suffer both.

A breach of contract is a common business claim. Finding a professional who can spot the required elements of a successful claim can increase your chances of success.