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How Contract Disputes Can Happen

Posted on April 5th, 2023

Hiring a contract dispute lawyer is often essential when it comes to navigating the complexities of a contract dispute. No matter how big or small the conflict may be between the two parties, contract disputes can easily turn downward into even more frustrating matters. That said, it is also significant to work with an experienced lawyer, such as Eric Lindh Foster Law, LLC.  Contract disputes can arise in various circumstances and industries, often leading to legal action to resolve the disagreement. Understanding the different ways contract disputes can come about is crucial for individuals and businesses involved in contractual relationships. In this article, we will explore five common scenarios that can give rise to contract dispute cases.

Breach of Contract

One of the most common reasons for contract disputes is a breach of contract. A breach occurs when one party fails to fulfill their obligations as outlined in the contract. This can involve failing to deliver goods or services as promised, not meeting specified deadlines, or not adhering to the terms and conditions agreed upon. A breach can be either a material breach, which goes to the heart of the contract, or a minor breach, which is a partial failure to perform. Breach of contract cases often involve seeking compensation for damages caused by the breach or pursuing specific performance to enforce the contract’s terms.

Misrepresentation or Fraud

Contract disputes can also arise from misrepresentation or fraud. Misrepresentation occurs when one party makes a false statement or conceals important information that influences the other party’s decision to enter into the contract. Fraud involves intentionally deceiving the other party to gain an unfair advantage. Misrepresentation or fraud can lead to a contract being deemed voidable or void, and the injured party may seek to rescind the contract and recover any losses suffered as a result.

Ambiguity or Interpretation Issues

Ambiguity or disputes over the interpretation of contract terms can also result in contract disputes. When contract language is unclear or susceptible to different interpretations, it can lead to disagreements about the parties’ rights and obligations. These disputes often require a thorough analysis of the contract language, the intent of the parties, and applicable legal principles to determine the correct interpretation. In some cases, it may be necessary to seek court intervention to clarify or enforce the contract’s terms.

Impossibility or Frustration of Purpose

Contract disputes may arise when unforeseen circumstances render performance impossible or significantly impact the purpose of the contract. Impossibility occurs when it becomes objectively impossible to fulfill contractual obligations due to events beyond the control of the parties, such as natural disasters or government actions. Frustration of purpose occurs when the underlying purpose of the contract is frustrated or rendered pointless due to unforeseen events. In such cases, parties may seek to be excused from performance or seek modification of the contract to reflect the changed circumstances.

Non-compliance with Legal Requirements

Contract disputes can also arise when one party alleges that the contract is unenforceable due to non-compliance with legal requirements. This can include situations where the contract violates laws or regulations, such as antitrust laws, consumer protection laws, or employment laws. Non-compliance with legal requirements can render the contract void or unenforceable, leading to a contract dispute where one party seeks to be released from the contractual obligations.


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