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Breach of contract in construction law

Construction is a business. Therefore, in exchange for payment, individuals and businesses expect results. This is true of those looking to build a new warehouse as well as homeowners who are simply looking for renovations or new additions. Far too often, though, construction companies fail to live up to expectations. Therefore, those in Sarasota looking to hire a construction company need to carefully consider how best to protect themselves before moving forward. More often than not the best way to do this is to enter into a contract.

As applied in construction law, and in its most basic terms, a contract is simply a bartered for exchange of goods or services. When on party to a contract fails to adhere to the terms of a contract, then the contract has been breached. Those who are on the receiving end of a breach of contract can wind up facing significant losses, which is why they may want to consider taking legal action.

Generally speaking, there are three remedies for a breach of contract. The first is damages. This essentially means that the party who breached the contract pays compensation to the wronged party. Usually these damages seek to put the non-breaching party back in the position he or she would have been in if the contract hadn't been breached. The second remedy is specific performance. Here, a breaching party is court-ordered to complete the agreed to service under the contract. Lastly, a wronged party can seek cancellation of the contract with restitution for any money that has been lost. This essentially puts the wronged party back in the position he or she was in prior to entering the contract.

The damages associated with a breach of contract can be massive in the construction context. Therefore, contracts should be carefully drafted, and when breach occurs, wronged parties need to take appropriate action to obtain a favorable outcome. This legal action is oftentimes the only way to ensure that the matter is made right and the wronged party can move on with getting a project done right.

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Michael L. Morgan Law Group
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