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Commercial Litigation: Taking Action Against a Breach of Contract

Posted on in Commercial Litigation

breach of contract, Naperville real estate attorneyWhether it is used to cover the terms of a rental property, outline the specifics of a business transaction, or define a code of ethics and/or integrity, contracts are designed to ensure all parties hold up their end of the deal. If a party fails to fulfill their part of the contract, indicated they have no intention of fulfilling their part of the contract, or makes it impossible for the other party to fulfill their end of the contract, this is known as a breach of contract. If this happens, the wronged party may be able to take legal recourse.

Lawsuits for Breach of Contract

Before a lawsuit can be filed for a breach of contract, certain stipulations must be in place. Firstly, a contract must generally be in writing (few oral agreements qualify). Moreover, the contract must fall within the Illinois Statute of Frauds limitations, which includes:

  • The sale of a real estate property,
  • A promise to pay another's debt,
  • A contract that takes longer than a year to complete (including property leases),
  • A contract for the sale or transfer of goods exceeding $500,
  • A contract that goes beyond the lifetime of the individual performing the contract, and
  • The transfer of property upon the performing party's death.

In addition to falling within these guidelines, individuals wishing to bring suit for a breach of contract should fall within the state's statute of limitations – or the deadline in which they must be filed or claimed.

Small Claims or Civil Trial Court?

Once you have determined whether or not a breach of contract is eligible for a lawsuit, it is important to ensure you take it to the proper court system. Typically, those that fall within $1,500 to $15,000 will be filed in small claims court, where the judgement is immediately rendered and appeal rights are extremely limited. If, however, the owed amount exceeds this limit (and most business contracts do), the matter will need to be taken to a civil trial court.

Because civil courts are formal settings with complex rules and proceedings, both parties should obtain qualified legal representation. The Naperville commercial litigation attorneys of Lindell & Tessitore, P.C. can provide advocacy, aggressive representation, and more than a decade worth of quality experience in the commercial legal arena. To schedule your initial consultation to learn how our offices can help your company achieve your objectives and protect your rights, call 630-288-2555 today.

Source:

http://www.allbusiness.com/when-can-you-sue-for-breach-of-contract-4141-1.html
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