NYC Breach of Contract Attorney for Settlement Negotiations, Alternative Dispute Resolution (ADR), and Litigation

Contract disputes can disrupt business operations and threaten business relationships. In some cases, they can also threaten the viability of businesses as going concerns. However, amicable resolutions are possible in many cases as well—and, oftentimes, it will be in both parties’ best interests to reach a mutually agreeable outcome. If your business is facing a contract dispute, NYC breach-of-contract attorney Daniel Knox can help you pursue the best path forward.

Mr. Knox has extensive experience representing businesses in contract disputes in New York City. His experience includes negotiating amicable resolutions that preserve valuable business relationships, representing businesses in contractually mandated alternative dispute resolution (ADR), and representing businesses in court. Whether you need to pursue a breach of contract claim or defend against an alleged breach, Mr. Knox can use his experience to efficiently target a favorable resolution in light of the facts and circumstances at hand.

What Are the Different Kinds of Contract Breaches?

At its core, a contract is a legally enforceable agreement between two or more parties. A contract must contain the following:

  • An offer made by one party
  • Another party accepts the offer made
  • Consideration exchanged between parties

Consideration usually means money is exchanged for a good or service. A breach of contract occurs when one party fails to fulfill its contractual duties. There are a handful of types of contract breaches that most commonly occur:

  • A minor breach occurs when one party fails to perform a portion of the contract. However, that breach does not inhibit the non-breaching parties from performing their responsibilities. Depending on the nature of the minor breach, the non-breaching parties may find it imprudent to file a lawsuit seeking damages.
  • A material breach occurs when one party violates the contract in a way that adversely affects the non-breaching party, prevents them from meeting their responsibilities, and renders the entire contract unfulfillable. At this point, a non-breaching party may stop performing its responsibilities.
  • An anticipatory breach occurs when one party to the contract makes it known that it cannot fulfill its contractual obligations. It is reasonable for a non-breaching party not to proceed under the contract to the point of incurring additional expenses or losses. Damages after the anticipatory breach is made known may not be recoverable as damages. 

What Are the Elements of a Valid Breach of Contract Claim? 

A valid breach of contract claim must possess four elements:

  1. A contract must exist between parties that is valid and enforceable
  2. A non-breaching party must have materially performed under the contract
  3. The breaching party must have failed to fulfill its responsibilities under the contract
  4. The non-breaching party must have suffered actual damages due to the breach

Types of Breach of Contract Cases We Handle

We handle all types of breach-of-contract cases in New York City. With a diverse client list that includes businesses in a wide range of industries, our practice includes serving as both plaintiff’s counsel and defense counsel for disputes involving:

These types of commercial agreements—among many others—can give rise to a wide range of disputes. If a counterparty has breached an agreement with your company (or if you have reason to believe that a counterparty may have breached an agreement with your company), NYC breach of contract attorney Daniel Knox can examine the contract to determine your business’s legal rights and legal options.

If your business is facing allegations of breach of a commercial contract, Mr. Knox can evaluate the allegations against the relevant contractual language and develop a defense strategy based on the circumstances at hand. In some cases, this may involve negotiating a settlement that mitigates the consequences of an inadvertent breach. In others, it may involve disputing the allegations in ADR or in court.

Available Legal Remedies Under a Breach of Contract Claim

A non-breaching party to a contract can be awarded damages in a breach of contract claim. These damages include:

  • Compensatory damages: Intended to place the non-breaching party into the same financial status it would have been in but for the breach of contract
  • Consequential damages: Considers future losses not yet incurred by the non-breaching party. Business losses likely to be suffered in the future can be considered within consequential damages. 
  • Liquidated damages: In some situations, contracts allow for damages that are not easily calculated.

Common Issues in Commercial Contract Disputes

When your business is facing any type of commercial contract dispute, making informed decisions starts with gaining a clear understanding of both the factual and legal issues involved. This, too, requires experienced legal representation. Commercial contract disputes frequently involve issues including:

Performance and Payment Obligations

Many breach-of-contract cases involve performance and payment disputes. If one party claims entitlement to payment and the other claims it isn’t obligated to pay due to deficient performance, this can lead to a contentious dispute that must be resolved before the parties can move forward. Depending on the circumstances, moving forward may involve negotiating a resolution that preserves the business relationship, or it may involve the parties going their separate ways (once any damages have been paid).

Confidentiality Obligations

Breach of confidentiality is a common claim in breach-of-contract cases as well. In addition to standalone non-disclosure agreements (NDAs), many types of commercial contracts routinely include confidentiality clauses that restrict one or both parties’ disclosures. Breaches of confidentiality can lead to substantial business losses, and prompt legal action can be essential for mitigating the costs and risks involved.

Non-Competition and Non-Solicitation Obligations

Along with breaches of confidentiality, breaches of contracting parties’ non-competition and non-solicitation obligations can also lead to substantial business losses. These types of breaches will often warrant claims for immediate injunctive relief as well as substantial damages. However, non-competition covenants are subject to certain limitations under New York law, and overbreadth (among other issues) can serve as a defense to liability in some cases.

Intellectual Property Rights

Breaches of contractual restrictions on the use of a party’s intellectual property can create substantial liability exposure as well—and they can also warrant claims for preliminary injunctive relief. Intellectual property disputes frequently arise in connection with franchise agreements, software license agreements, and various other types of commercial contracts.

Representations and Warranties

Breaches of representations and warranties are common causes of action in breach-of-contract litigation. They are also common triggers for mediation and arbitration under the mandatory ADR provisions of commercial contracts. Representation and warranty claims are often highly fact-specific; as a result, gaining a clear and comprehensive understanding of the relevant facts is a critical first step toward deciding what claim(s) or defense(s) to assert.

Default, Right to Cure, and Termination

Defaults under commercial leases and other commercial contracts can justify early termination in many cases. However, these contracts will often also include provisions that provide a right to cure. Disagreements regarding what constitutes a default, whether a cure was sufficient, and whether an early termination is “wrongful” can all lead to contentious disputes that require mediation, arbitration, or litigation to resolve.

Indemnification Obligations

Many breach-of-contract cases also implicate the parties’ indemnification obligations. Indemnification clauses shift liability between contracting parties, and, as a result, they can have significant financial implications in the event of a dispute. In many cases, disagreements regarding the interpretation of indemnification clauses will need to be resolved before the parties can address any underlying issues.

Specific Performance

When a court orders specific performance, the breaching party is required to perform its contractual duties. This outcome may be ordered when money alone will not make the non-breaching party whole, or when the value of the breach is not readily quantifiable.

Rescission under a Breach of Contract

A contract may be invalidated by a court and the parties placed in the positions they were before entering into the contract if:

  • The non-breaching party cannot recover damages
  • No adequate remedy exists under the law

Again, these are just some of the most common examples of issues in breach-of-contract cases. At Knox Law Group, we handle all types of contractual disputes in New York City. If your business is dealing with any type of breach (or alleged breach), we encourage you to contact us to discuss what we can do to help.

What Are the Defenses to a Breach of Contract Claim?

There are defenses available to raise against a breach-of-contract claim. An NYC breach of contract attorney can help you develop a defense strategy if you have been accused of breaching a contract. 

  • Fraud or Duress. A party can argue that the contract was agreed to only after being coerced into doing so or that it was induced to sign a contract fraudulently. 
  • Non-performance. This defense involves arguing that the party alleging breach of contract did not fulfill its obligations under the contract. 
  • Mistake. In the event that both parties were mistaken about a material portion of the contract, a breach of contract claim cannot stand. 
  • Performance impossibility. An Act of God or another unforeseen occurrence made it impossible to fulfill the terms of the contract. 

How Soon Must a Breach of Contract Claim be Filed?

The statute of limitations in New York for a breach-of-contract lawsuit is typically 6 years from the date of the breach. It is best to speak with an experienced NYC breach-of-contract attorney about your specific circumstances. 

Frequently Asked Questions:

How long do breach of contract cases typically take?

Many factors specific to your case will determine its length. Our office can help you map out the case once we find out more about the number of parties to the contract, the nature of the dispute, and whether any prior attempts to settle the matter have been made.

Is it necessary to go to court?

Negotiation and other methods of dispute resolution are often successful in breach-of-contract cases. If an out-of-court settlement is not possible, our NYC breach of contract attorney will help develop a strategy geared toward achieving your goals at trial.

Must a contract be written in order to be enforceable?

New York law allows for a party to sue for breach of an oral contract. However, winning a breach-of-contract lawsuit based on an oral agreement is difficult. In certain circumstances, such as those involving real estate contracts, the agreement must be in writing to be enforceable. 

Schedule an Appointment with an NYC Breach of Contract Attorney Today

Do you need to speak with an attorney about a contractual dispute in New York City? If so, we invite you to get in touch. NYC breach-of-contract attorney Daniel Knox can help you understand your options and make informed decisions about your next steps. To schedule a confidential consultation as soon as possible, contact us online today.

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Commercial Litigation