What to Do About Broken Contracts in Draper, Utah

What is a Broken Contract in Draper, Utah?

Contracts are agreements between two or more parties that outline terms for a specific exchange or action for value, and they are legally binding agreements. A broken contract is when a party to a contract fails to meet their contractual obligations. This is also known as a breach of contract. When a contract is broken in Utah, the non-breaching party has legal remedies to terminate the agreement or claim compensatory damages to hold the breaching party accountable. 

There are two main types of contract breaches: material breach and anticipatory breach. An anticipatory breach occurs when one party indicates in advance that they won’t fulfill their obligations under the contract. A material breach of contract happens when one party fails to fulfill the obligations specified in the contract.

How to Prove a Breach of Contract

To file a claim for a breach of contract in Utah, you need to prove three key breach of contract elements.

• Existence of an enforceable contract: There must be a clear, agreed-upon contract between the parties. This contract must outline the duties and obligations of each party, and include something of value in return for performance (this is known as “consideration”).
• Failure to perform: You must show that the other party failed to fulfill their part of the agreement or that they breached the terms of the contract.
• Proof of breach: The breach must be significant enough to impact the purpose of the contract. This is known as “material breach”. This element is satisfied when the failure to perform contractual obligations destroys the purpose of the contract. If the breach is minor and does not significantly affect the overall agreement, the breach may not be enough to terminate the contract or sue for damages.

Written Contracts vs. Verbal Contracts

Verbal contracts are binding in Utah, however, written contracts usually provide stronger evidence in court for a breach of contract. A written contract clearly states the terms of the agreement, value, and expectations of both parties. It also includes signatures as proof that the contract was executed. If you have a written contract, it’s easier to prove that an agreement existed and that the other party did not meet their obligations.

Learn how to avoid a contract breach with an   airtight agreement   in Utah.

Statute of Limitations in Utah

Utah contract law is subject to the statute of limitations which sets time limits on when a lawsuit can be filed for a breach of contract. For written contracts, the time bar is six years. Verbal agreements have a four-year statute of limitations (Utah Code §§ 78B-2-307 and 78B-2-309).

These time limits are important to file an action for a breach of contract case. If you wait too long to sue for breach of contract, you may lose your right to take legal action. However, the other party may raise the statute of limitations as a defense in court.

How to File a Breach of Contract Lawsuit in Utah

If you believe a contract has been broken, the first step is to file a lawsuit in the Utah district court. You will need to file the proper paperwork to officially begin contract litigation. After the lawsuit is filed, you must notify the other party that legal action is underway. Both sides will exchange documents and information, and the case will go to trial if it cannot be settled through negotiation or mediation.

What Can You Expect from a Breach of Contract Lawsuit?

In a breach of contract lawsuit, you can typically seek to have the contract enforced or seek compensation for losses caused by the breach. In most cases, parties seek to restore the situation to what it would have been if the contract had been performed correctly. However, in breach of contract cases, you cannot recover punitive damages unless there is fraud.

Proving a breach of contract can be challenging. Therefore when filing a lawsuit for breach of contract, it’s usually better to consult an experienced business attorney in Draper, Utah who is knowledgeable in Utah contract law. Your attorney will evaluate your case, and help you understand your options for remedies and damages, and gather the necessary evidence.

Experienced Contract Dispute Attorney in Draper, Utah

At Watts Law, I have proudly served the Draper business community for 20 years as a skilled contract attorney.

If you are dealing with a breach of contract dispute in Draper, Utah, I’m ready to assist you. Contact my office today at (801) 630-8309 to   schedule a consultation.