Michael L. Feinstein, P.A.

When does a contract breach warrant construction litigation?

Before entering into any type of business relationship, creating a contract is typically advisable. As a result, most Florida construction company owners will create contracts to ensure that they and their clients understand under what terms the project will be completed. Of course, signing contracts do not always prevent people from violating the terms, and in some cases, construction litigation could result.

If someone violates the terms of a contract, a breach has occurred. In cases of a breach, the party that has been wronged may consider taking legal action against the violating party. If a major or material breach has occurred, filing a lawsuit to address the damages may help parties receive compensation for those damages. For example, if a construction company does not receive payment as stipulated by the terms of the contract, it may be necessary to file a lawsuit to receive that owed payment.

On the other hand, lawsuits are not always warranted. If a minor or nonmaterial breach occurs, the project is typically not affected in a significant way, and the construction company likely has not suffered any harm as a result. It may not be worthwhile to pursue a lawsuit if so substantial damages occurred due to a minor breach.

Still, it is important to determine whether a major or minor breach of contract has occurred. It may not always be obvious as to whether the breach is significant enough to pursue legal action. Fortunately, Florida construction company owners can consult with legal professionals to determine whether pursuing construction litigation could be in their best interests.

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