A contract is a promise or a set of promises which are legally enforceable. A contract may involve a responsibility or an obligation to do something or refrain from doing something. The failure to perform such a promise is called a breach of contract. The law provides a solution if a contract is breached. The goal is to restore the situation and/or circumstances to the way it was originally before the contract had been breached.
A contract can be either written or oral. However, oral contracts are difficult to prove. For a contract to be legally binding, a promise must be exchanged for an agreeable and adequate consideration. Adequate consideration is payment (usually in the form of money) which a party receives in exchange for the promise to be kept in the contract. Gifts are not adequate consideration and the promise to give a gift is usually unenforceable.
Contract litigation is when the parties seek a legal remedy through the Court when a contract is broken or becomes the subject of a dispute between the parties. The parties involved usually will make every effort to avoid going to Court by means of negotiations. In a lawsuit, the Plaintiff has to prove the Defendant has breached the contract, committed a wrong, and needs to provide compensation for the damage done by not honoring the contract. Damages are intended to pay for the expenses related to the breach and compensation for the wrong doing. The Defendant’s position is to argue the circumstances involving the breach of the contract and to keep the damages low if the Court determines to rule in favor of the Plaintiff. Contract litigation is a process of carefully reviewing the contract in dispute, the circumstances involving the breach and analyzing the law.