You run your business on trust and promises. A contract is the most important promise of all. You hold up your end of the deal, delivering goods or services as agreed. You expect the other party to do the same by paying you on time or providing what they promised.
When they fail, it is more than just a disappointment. A broken contract can damage your company’s finances, hurt your reputation, and cause immense stress. You are left holding the bag, wondering what to do next.
You do not have to accept the loss. At Gross Law Group, we defend Panama City Beach business owners when others break their trust. When another party breaches a contract, our litigation attorneys aggressively enforce your rights and recover your owed damages. We understand this is not just a legal issue but a business problem that needs a real solution.
If you are dealing with a broken contract, call a Panama City Beach business contract lawyer today at (888) 858-1505 for a straightforward talk about your options.
Why Choose Gross Law Group for Your Contract Dispute in Panama City Beach?
When heading into a contract dispute, you need more than just a lawyer who can read a document. You need a legal team that understands your business and is unafraid of a fight.
At Gross Law Group, we combine real-world business knowledge with battle-tested courtroom skill. We offer our clients "Big Firm Results, Small Firm Attention," providing a powerful legal strategy with the personal focus your case deserves.
Keith Gross, an entrepreneur who built and ran successful companies long before becoming an attorney, also provides clients with strategic general business law counsel.
He has been in your shoes. He knows the frustration of dealing with a partner who does not pay. He understands that a contract breach directly affects your cash flow, operations, and ability to do business. This background gives him a unique perspective on your dispute. He understands the problem from your perspective and focuses on finding a solution that makes business sense.
Attorney Travis Tarpeh strengthens our litigation team in Panama City Beach. Travis brings a vital skill set to any contract fight: he is an experienced trial lawyer.
Before joining our firm, he served as a prosecutor in Brevard County, where he spent his time in the courtroom, arguing cases before judges and juries. He is comfortable in an adversarial setting and knows how to build a case for trial.
When the other side refuses to be reasonable, you need an attorney ready to take the fight to the next level.
Travis’s combined law degree and M.B.A. also give him a deep understanding of the business and financial issues at the heart of your dispute.
With Gross Law Group, you get a powerful combination: an entrepreneur’s practical understanding of your business problem and a seasoned trial lawyer’s problem-solving skill.
What Is a Breach of Contract in Florida?
A legally enforceable agreement between parties is a contract. It forms the foundation of almost every business transaction. While contracts may be verbal, written agreements are always best. Florida’s “Statute of Frauds” requires that certain types of agreements must be in writing to be enforceable.
For a contract to be legally valid in Florida, it generally needs three key elements:
- An Offer: One party proposes a deal to another party.
- An Acceptance: The other party agrees to the terms of the offer.
- Consideration: Both parties exchange something of value (e.g., money, goods, services, or a promise to do or not do something).
A breach of contract happens when one party fails to perform their promise in the agreement without a valid legal excuse. There are two main types of breaches.
What Is a Material Breach?
A material breach is the most serious type of contract failure. It occurs when one party’s failure to perform is so significant that it destroys the value of the contract and defeats the purpose of the agreement. The other side ends up with something completely different from what they bargained for—or nothing at all.
For example, if you hire a construction company to build a two-story office building and they only build a one-story warehouse, that is a material breach. You did not get the core benefit of your agreement. Similarly, if a supplier contracts to deliver a critical part for your manufacturing line but delivers the wrong part, making production impossible, that is also a material breach.
When a material breach occurs, the non-breaching party is released from their own contract obligations. You can terminate the contract and sue for damages to recover your full losses.
What Is a Minor Breach?
A minor breach, sometimes called a partial breach, is a less serious failure. The party who broke the promise still completed the most important parts of the contract but failed on a smaller detail. The agreement's overall purpose was still met, even with the small error.
Imagine you hire a company to paint your office, and the contract specifies a certain paint brand. If they use a different but equally high-quality brand of the same color, that is likely a minor breach. The main goal—a professionally painted office—was achieved. Another example is a supplier delivering materials a day late, but the delay does not cause you to lose money or halt your operations.
If a minor breach occurs, you must still fulfill your side of the deal and pay for the goods or services you received. However, you can sue for any financial harm the minor breach caused. If the one-day delay forced you to pay workers for an hour of downtime, you could sue the supplier for that lost productivity. You cannot, however, cancel the entire contract over the small issue.
Understanding which type of breach occurred is important because it determines your legal options. A Bay County contract litigation attorney can analyze your agreement and the situation to advise you on the best path forward.
Your Legal Options After a Contract Breach in Panama City Beach
When someone breaks a contract with your business, you have legal options. Contract law aims to restore the injured party to the position they would have held if the promise had been fulfilled. A court usually orders a remedy to achieve this.
Here are the most common remedies for a breach of contract:
Damages (Getting Paid for Your Losses)
The most common remedy is money, called damages. The goal is to compensate you for the financial harm you suffered because of the breach.
- Compensatory damages cover your direct losses. If a client refuses to pay a $10,000 invoice, your damages are $10,000 plus any interest.
- Consequential damages cover indirect losses that occurred due to the breach.
- In some contract disputes, Florida law may also allow the winning party to recover its attorney's fees from the losing party.
Specific Performance
Sometimes, money is not enough. In rare cases, a court might order specific performance, which forces the breaching party to do exactly what they promised in the contract. This remedy is usually only available when the subject of the contract is unique, like a piece of real estate or a one-of-a-kind piece of art.
Enforcing the Contract Through a Lawsuit
ou usually must file a lawsuit, guided by an experienced business contract litigation attorney, to get damages or specific performance.. It is important to act quickly. Florida has a "statute of limitations," which is a lawsuit filing deadline. For written contracts, the deadline is five years. If you wait too long, you lose your right to sue forever.
Why You Need a Panama City Beach Contract Litigation Attorney
When a contract dispute arises, you might try to solve it yourself. If that does not work, you might think any lawyer can help. However, contract litigation—the process of fighting a contract dispute in court—is a specific skill. You need an attorney prepared to go to court and fight for you.
Here is why hiring an experienced litigation attorney is critical:
- The Other Side Will Have a Lawyer: In a serious dispute, the other party will hire counsel whose only job is to protect their client. Going up against a trained legal professional yourself is a significant disadvantage.
- Litigation Has Strict Rules: The court has formal rules for everything, from filing a complaint to gathering evidence and questioning witnesses. A procedural mistake can get your case thrown out. A litigation attorney navigates these rules correctly.
- Building a Strong Case Takes Work: Winning a contract case requires you to prove your claims with evidence. This process, called discovery, involves gathering documents, taking depositions (sworn testimony), and developing a legal strategy. An experienced lawyer knows what evidence to get and how to get it.
- A Trial Lawyer Gives You Strength in Negotiations: Most contract disputes settle before trial. However, you get the best settlement when the other side knows you are willing and able to win in court. Hiring a skilled trial attorney conveys that you are serious.
According to resources like the Small Business Administration (SBA), clear contracts and a dispute resolution plan are key to managing a business. When a dispute happens, a litigation lawyer is a vital part of that plan.
First Steps to Take When a Business Contract Is Broken
Your actions immediately after discovering a breach of contract can impact your case.
- Gather All Your Documents: The contract itself is the most important evidence. Find it and read it carefully. Collect everything related to the deal: all emails, letters, text messages, invoices, and payment records. Organize them chronologically.
- Document Your Financial Losses: Calculate how the breach has harmed your business financially. This includes money you never received, costs to hire a replacement, or lost profits.
- Check Your Contract for a "Notice" Clause: Many contracts require you to give the other party formal written notice of a breach and time to fix the problem (or "cure" the breach) before you take legal action.
- Do Not Make New Agreements or Threats: Avoid arguing over the phone or sending angry emails. Do not agree to new terms or accept partial payment without talking to a lawyer. Anything you say or write can be used against you.
- Call a Panama City Beach Business Contract Lawyer: This is the most important step. An attorney can advise you on the best way to protect your rights. Complexities in Florida law, such as the Florida Deceptive and Unfair Trade Practices Act or commercial codes for the sale of goods found in Chapter 672 of the Florida Statutes, can add layers to your case. An attorney can sort through it all.
Frequently Asked Questions (FAQs)
What if our contract was verbal and not in writing?
Florida law recognizes verbal contracts for many types of agreements. However, they are much harder to prove in court. The key challenge is providing clear evidence of the agreement's terms without a written document.
Also, Florida's Statute of Frauds requires certain contracts, like those for the sale of real estate or agreements that cannot be performed within one year, to be in writing to be enforceable.
If your dispute involves a verbal agreement, gathering all related correspondence, witness statements, and records of performance is crucial.
What is the "duty to mitigate damages" in a contract dispute?
In Florida, the non-breaching party has a legal duty to mitigate, or minimize, their own damages. This means you must take reasonable steps to prevent your losses from getting worse after the other party breaches the contract.
For example, if a supplier fails to deliver materials, you must make a reasonable effort to find an alternative supplier instead of just letting your operations shut down indefinitely. A court may reduce your damage award if it finds you did not act reasonably to limit your losses.
How long does it take to resolve a business contract lawsuit?
The timeline depends on the complexity of the facts, the amount of evidence, the court's schedule, and the willingness of the other party to negotiate a resolution.
Will I get my attorney's fees back if I win?
You can only recover your attorney's fees from the other party if there is a specific clause in your contract that allows it (a "prevailing party" clause) or if a particular Florida statute grants the right to fee recovery for your type of claim. It is not an automatic right. We will review your contract and the applicable laws to determine if you can seek reimbursement for your legal fees.
Call a Panama City Beach Business Contract Litigation Attorney
A broken contract is a broken promise that can threaten your business. You do not have to absorb the loss. The Gross Law Group fights to secure the money you deserve. We uniquely combine an entrepreneur’s insight and a trial lawyer’s skill in every case. We provide the "Straight Talk, Strong Action" your business deserves.
If your business is struggling with a contract dispute in Panama City Beach or Bay County, do not wait. Let us fight to enforce your rights.
Call a Panama City Beach business contract litigation attorney at Gross Law Group today at (888) 858-1505 or visit our contact page for a confidential consultation.