A contract is a legally binding agreement made between two or more parties. The contract’s terms outline how each party is supposed to perform in order to satisfy the agreement. When parties do not perform the way the other party to the contract thought that they would, then contract disputes arise. This dispute could be caused by unclear contract terms or because there has been a breach of contract. In New Jersey, when a breach of contract occurs the breaching party may be liable for damages.
In a recent case, a couple is suing two New Jersey contracting firms for breach of contract. According to the husband and wife couple, they hired the contractors to do home improvements in early 2010. These improvements included a new kitchen floor, wrought iron work, new siding on the home, a laundry room addition and other various upgrades in the home. Work on the project began in 2011 and lasted three months.
Following completion of the project, the couple says they noticed construction defects and other problems. The couple alleges that some of the work was done wrong and some of the work was missing including missing lighting, a missing peephole and missing carpeting. The couple says that some of the defects caused water damage and has created a mold problem within the home. Finally, the couple says that while they have complained about the missing, damaged and incorrect work, the contractors never returned to the house and made no attempt to fix their work.
Therefore, the couple sued for unjust enrichment, breach of contract and negligence. They are asking for $50,000 in damages and for other costs.
As can be seen in this case, breach of contract suits can be expensive and time consuming for businesses. They can distract from the business’s other work. However, with proper management contract disputes can be solved quickly so things can return to normal.
Source: The Pennsylvania Record, “Phila. couple files breach of contract claim against two N.J. contracting firms,” Jon Campisi, May 3, 2013