Breach of Employment Contract FAQs

Breaches of employment contracts can lead to major disruptions in people’s income as well as suits for damages on either side of the contract. Employees who have been unfairly terminated or treated in a way that violates their employment contract have the right to seek redress for this issue. Below, the team at Hux Law Firm answers some of the common questions that are asked about a breach of employment contracts.

Can I be sued for breach of contract if I want to end my contract without finishing the job?

The answer to this can be complicated, but in a general sense: yes, your employer can sue you for breach of contract. It is always best to attempt to negotiate an end to the contract rather than to simply break it and hope for the best. Securing an amicable termination for your contract is always the best way to handle these kinds of situations.

What are the remedies for breach of contract?

There are various kinds of remedies that might be asked for when a breach of contract occurs. Either party can ask for liquidated damages, which are often double the amount that is owed, compensatory damages that are the actual losses related to the breach of contract, or specific performance, which is related to asking one of the parties to perform a task to properly close out the contract. There are also some more complex remedies like expectation damages that are paid as a result of losses related to potential income earned.

How serious is a breach of contract?

This is a violation of the terms that were agreed upon by both parties when the contract was signed. This could be something as small as a late payment, or it could be a failure to deliver a finished product, completion of a construction job, or failure to deliver assets. Contracts are binding, and breaking one almost always leads to a trial.

Is there a legal way to breach a contract?

Your specific contract might have language built into it that allows for one or the other party to breach the contract. This kind of agreement will still carry with it stipulations that must be met before the breach can be handled without legal intervention. In almost every case, there is no legal way to break a contract that has not been satisfied per the details that were agreed upon when it was signed.

Are there different types of breaches of contract?

There are four main types of breaches of contract. A minor breach happens when a small part of the obligation is not met, and might not cause legal recourse. A material breach of contract happens when a key element of the contract is not provided or is denied by one party, which almost always leads to legal action. An anticipatory breach happens when the breaching party informs the other party that they cannot meet the obligation of the contract, and an actual breach occurs when the contract passes its set timeframes for satisfaction.

How can a breach of contract be avoided?

This kind of issue can often be avoided by adding clear wording and language to each contract. There should also be a realistic expectation that the contract can be executed as written. The contract should not break any laws, and each party should be able to prove that they have a track record of completing this kind of task. These factors all combine to make sure that you and the contracting party can both fulfill the contract.

What happens when a contract is breached?

When a contract is breached, both parties have the right to seek legal counsel related to the breach of contract. Sometimes the parties involved will be able to come to an amicable resolution of the issue without the assistance of lawyers. In most cases, however, legal support is required on both sides to come up with a settlement that satisfies everyone’s needs.

How is a breach of contract enforced?

When a breach of contract occurs, an employer or employee can reach out to the other party and inquire about a remedy for the situation. This is usually a request to fulfill the terms of the contract. If this is not possible, legal action might be pursued by either party to seek remedy or damages for the incomplete contract that will now not be executed.

Can a contract be rendered voidable?

A contract might be void if certain extenuating circumstances exist. These conditions might be related to one of the parties being under duress, a threatening or unsafe situation, intimidation of one party against the other, mental incompetence, or coercion. If these factors are present, the contract might be rendered null and void.

These are just a few common questions Hux Law Firm clients ask, and we’re happy to answer any other questions you may have. Give our office a call at (937) 315-1106 or complete our online contact form and someone from our team will be glad to assist you.