Ask a Lawyer: What to Do When Facing a Contract Breach in Las Vegas?

Whether you’re a business owner, an individual, or somewhere in between, contracts are a fundamental part of how we interact with the world. They outline agreements, set expectations, and protect the interests of everyone involved. Unfortunately, contracts don’t always guarantee protection on their own, and when one party breaks the agreed-upon terms, what should you do? Contacting a Las Vegas, NV contract lawyer should be one of your first steps.

Identifying a Breach

The first step is to determine whether there has actually been a breach of contract. Not every minor deviation qualifies as a full-blown breach. Look closely at your contract’s language. Are there clear deadlines, performance expectations, or specific terms that the other party has not met?

Nevada recognizes both material and immaterial breaches. A material breach is a serious failure to perform that fundamentally undermines the purpose of the contract. An immaterial breach may be less severe but is still a violation of the terms.

Gathering Evidence

Once you suspect a breach, documentation is key to proving the issue. Collect any communications you’ve had with the other party, such as emails, letters, or invoices, that demonstrate the other party’s failure to fulfill their obligations. If witnesses observed the breach, gather their contact information.

Nevada law has a six-year statute of limitations on written contracts and a four-year limit on oral contracts. This means you have that window of time from the date of the breach to file a lawsuit. It’s best to start building your case as soon as possible.

Attempt Informal Resolution

Often, a contract breach might stem from a misunderstanding or a simple oversight. Before leaping into legal action, consider a more informal approach. Contact the other party in writing, clearly outlining the breach and how you’d like them to remedy the situation. Sometimes a simple reminder or an open discussion can resolve the issue without further escalation.

Potential Remedies

When one party breaches a contract, the other party may be entitled to several types of remedies, including:

Compensatory Damages

These are financial awards meant to compensate you for the actual losses caused by the breach. This might include costs incurred to fix the problem caused by the breach or lost profits if the breach directly damaged your business. It can also include things like interest if you’ve been without payments.

Specific Performance

In some cases, the court may order the breaching party to perform their obligations under the contract rather than only awarding money. This is more common when the subject of the contract is unique or difficult to replace.

Liquidated Damages

If your contract included a liquidated damages clause (which pre-determines the amount to be paid in case of breach), you may be entitled to collect that amount.

Choosing Your Course of Action

The best way to handle a contract breach depends on the specific circumstances of your situation, so you’ll want to talk with an attorney who can analyze your case and help you weigh the costs, benefits, and risks of different legal strategies, ranging from aggressive negotiation to filing a lawsuit.

If you’re suffering from a breach of contract, contact the Hutchings Law Group in Las Vegas now for help.

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