Archive for the ‘Breach of Contract’ Category

Common Remedies for Breach of Contract in Business

Wednesday, November 30th, 2022

What are the Most Common Remedies for Breach of Contract in Business?

Our MLG Business Litigation Group attorneys in Florida and California know that not everything runs as smoothly as business owners hope — even when there is a contract in place.

Whether it is a contract with a partner, vendor, or another third party, when one or more parties do not fulfill their obligations, you should have access to legal remedies that will make your company whole again.

Several common remedies for breach of contract exist, but the appropriate remedy depends on the terms of the contract, the nature of the breach, and the specific circumstances of the case.

We can help you determine which legal remedy is right for your company. That may include one or more of the following damages.

Compensatory Damages

The most common type of legal remedy for breach of contract is an award of compensatory damages.

Compensatory damages are based on the calculation of actual losses your company has sustained because of the breach of contract.

They typically fall into two categories:

  • Expectation Damages: Also referred to as general damages, which are those that directly result from the breach of contract.
  • Consequential Damages: Damages that emerge as a natural consequence of the breach, which is often calculated in the loss of company profits.

The breaching party is going to do all it can to avoid paying each type of damage, especially consequential damages, as it will insist they are speculative. Our skilled Florida business litigation attorneys can help you understand and prove your actual losses to help build your case for success.

Specific Performance

Specific performance is a type of breach of contract remedy where the court orders the breaching party to perform their end of the agreement.

Typically, monetary damages are the favored resolution, but specific performance may be necessary when you had a contract in place for something that is unique and cannot be easily replaced.


Converse to a specific performance remedy, injunctions are ordered by the court — temporarily or permanently — to a party, specifically informing them not to do something.

Temporary injunctions are often ordered while litigation is pending to prevent potential damage, whereas permanent injunctions may be issued as part of the court’s final ruling in a lawsuit.


Rescission is a legal remedy that allows the non-breaching party to cancel the contract, rather than seek damages. In these cases, the non-breaching party can simply refuse to complete their end of the bargain.

Liquidated Damages

Liquidated damages are a specific amount the parties agree to in the contract as compensation for a breach. This could be the amount of earnest money in a real estate purchase, a certain amount of money for each day a deadline is not met in a construction contract, or partnership agreements that include liquidated damages provisions.

Call MLG Business Litigation Attorneys in Florida & California Today

If you are seeking breach of contract legal counsel you can trust — inside and outside the courtroom — contact our Florida Breach of Contract attorneys at MLG Business Litigation Group in California today at (786) 706-9228 to schedule a free initial consultation to discuss your specific legal needs, so we can begin creating customized legal solutions that produce results.

When Can I Legally and Successfully Breach an Existing Contract in Florida?

Thursday, June 30th, 2022

When Can I Legally and Successfully Breach an Existing Contract in Florida?

Our MLG Business Litigation Group attorneys in Florida know that well-drafted, executed, and properly utilized contracts are a necessary part of doing business.

These contracts should clearly lay out the agreements being made by both parties, including the expectations and criteria to be met and the consequences in the event of a breach.

When one party fails to fulfill any of its contractual obligations, it is considered a breach of contract.

The question becomes, is there a time when one party can successfully breach a contract without legal consequences. The answer is, it depends.

What Constitutes a Breach of Contract in Florida?

All breach of contract circumstances and the specifics therein are unique. However, a breach of contract can occur when one party fails to perform the duties outlined in the contract on time, in accordance with the terms of the agreement, or does not perform at all.

Before one party can seek damages from the breaching party, two things must be true under Florida law:

  • There must be a valid legal contract in place.
  • The valid legal contract must be materially breached, causing financial harm.

When a contracting party commits a breach of the contract, the counterparty is discharged of its obligations under the contract.

How Does Florida Law Identify a Material Breach of Contract?

The fact that the breach must usually be material to give rise to damages is unique under Florida law.

A material breach of contract requires that the breaking point of the contractual duty be significantly important.

That means the result of the breach is substantial in magnitude and is commonly found to be material when there is a failure to comply with price and payment obligations. The meeting of certain deadlines can also be deemed material, particularly where the contract provides that time is essential.

Administrative, technical, or minor provisional breaches of contact will typically not rise to the material level. Likewise, material breaches may not be proven to exist where little to no harm or injury is suffered due to the alleged breach, or when there is a slight delay in meeting deadlines.

What are the Available Remedies for Florida Breach of Contract?

When an individual or business breaches a contract, the other party named in the agreement may be entitled to relief, or a remedy, under Florida law.

The main remedies for a breach of contract in Florida may include:

  • Damages in the Form of Financial Compensation
  • Specific Performance, Requiring the Other Party to Fulfill the Contract
  • Cancellation and Restitution

If your business has been materially disrupted due to a breach of contract, or if you have questions about your role in the agreement after another party breached their contractual obligations, contact our MLG Business Litigation Group breach of contract attorneys in Florida today at (786) 706-9228 for a free case evaluation. We can help you understand your complete legal rights and options to get your business back on track.

The Top 10 Mistakes Made When Starting & Operating a Florida Business

Tuesday, April 5th, 2022

The Top 10 Mistakes Made When Starting and Operating a Florida Business

Our MLG Business Litigation Group attorneys know how difficult it can be to navigate the legal requirements associated with starting a business in Florida. 

That is why we have designed unique Florida business start-up packages that help our clients establish their vision using flat legal fees they can plan for to help avoid the common pitfalls associated with starting a company.

Here is what new business owners need to know to help avoid the top 10 mistakes made when starting and operating a Florida business.

Mistake One: Failing to Register the Business with the State of Florida

All Florida businesses new and existing must register their companies with the Florida Department of State when they are conducting business within its borders.

Failing to do so may result in difficulties establishing a company bank account, which may leave the person or partners personally liable for business debts and obligations.

Mistake Two: Failing to Choose a Unique Business Name

Before you can establish your brand, and register your company with the State of Florida, you must choose a unique business name that does not interfere with the intellectual property rights of a third party.

Simply put, if you choose a company name that is the same or remarkably like an existing brand, you may be required to change it and potentially be held liable for any damages that resulted from your oversight.

Vetting the business name first will save time, money, and the headache of losing your brand equity later.

Mistake Three: Failing to Establish Partnership or Shareholder Agreements

If you are not the only one starting a new company that involves more than one principal, you must develop a partnership, LLC operation, or shareholder agreement in place before the business begins.

These agreements set forth the expectations for the business and its owners, and include provisions that dictate:

  • How business decisions will be made
  • How profits will be distributed
  • What will happen in the event of a dispute between the parties
  • When owners can transfer their business interests
  • What will happen in the event of the death, disability, or divorce of one of the partners

At MLG Business Litigation, our skilled Florida business start-up attorneys provide flat fee partnership agreements that will allow you to begin operating with confidence.

Mistake Four: Failing to Adequately Address Accounting and Tax Issues from the Start

Before you can successfully keep track of your business’s accounting needs, including basic accounts payable and receivable requirements, you must determine which documentation method you are going to use.

Whether you prefer to use in-house software, like QuickBooks or something similar, or hire a bookkeeper or Certified Public Accountant to do the work, you must decide before billing customers or paying vendors.

Failing to establish a reliable accounting procedure first can significantly impact your business’s profits, losses, and overall success.

In addition, all for-profit Florida businesses are required to pay local, state, and federal taxes. To avoid IRS penalties, establish a clear and concise accounting process from the start.

Mistake Five: Failing to Separate Personal Accounts from Business Accounts

This one is simple but often overlooked.

If you do not separate your personal financial accounts from your business accounts, you cannot properly shield yourself — or your partners — from personal liability for the activities and actions undertaken on behalf of the business.

That means creditors can hold a shareholder, member, or partner personally liable for the acts of the business.

All businesses should establish a separate bank account — or accounts, when necessary — and any business expenses that must be paid from that account to avoid commingling business funds with personal funds.

Mistake Six: Failing to Comply with Florida Employment Laws

The fines and penalties associated with violating Florida employment laws are significant and can swiftly cripple a start-up’s ability to successfully operate.

The moment your company hires its first employee, the business becomes an employer, you must comply with certain employment laws, including wage and hour, civil rights, and whistleblower laws.

Mistake Seven: Failing to Develop and Enforce Business Contracts

A common Florida business start-up mistake is entering into an agreement with a customer, vendor, strategic partner, or even an independent contractor with a solid business contract in place.

Business contracts outline the expectations of each party involved, specifically identifying each party’s responsibility, the timeline of the agreement, and at what expense.

When no written contract is in place, any person or business can default on the agreement without being held responsible for its breach. This could easily jeopardize your business before you even get started.

Mistake Eight: Failing to Quickly and Accurately Address Business Disputes

Whether it is an intra-office spat between partners or a disagreement between the company and a vendor, failing to assess the complaint and a potential remedy early could lead to lawsuits and litigation.

When the courts become involved, the outcome will be costly. This can cripple a small business from the start.

That is why it is important to have solidly constructed contracts in place that address dispute resolution, so you and your company can mitigate the risk of costly litigation.

Mistake Nine: Failure to Obtain a Required Business License

Not all Florida businesses require a license to operate in the state, but if yours does, you much procure the license before you start conducting business. Failing to do so may result in substantial financial penalties.

Depending on where your Florida business is located, the local licensing requirements may differ. Our skilled Florida business start-up attorneys can help you determine if you need a license, which type(s), and how to successfully file for the proper credentials, so you can get your company off the ground quickly.

Mistake Ten: Failing to Purchase Liability Insurance

When companies do not purchase liability insurance, they are opening the door to lawsuits that may require payment directly from the company, business owner, partners, or shareholders’ pockets.

Do not wait until you are faced with a claim to engage in risk management for your business.

One of the best ways to manage risk for your business is to purchase liability insurance.

Contact MLG Business Litigation Group in Florida Today to Get Started

If you are ready to start a Florida business or need help moving your company to the next level of operation, our skilled Florida Business Litigation attorneys can help provide real-time legal guidance, advice, and solutions.

Contact our MLG Business Litigation Group attorneys in Florida today at (786) 706-9228. We can help you understand your complete legal rights and options to start and keep your Florida business on track.

Defending Your Florida Business Against Breach of Contract Claims

Wednesday, March 16th, 2022

What are the Most Common Affirmative Defenses to a Breach of Contract Claim?

Our MLG Business Litigation Group attorneys in Florida know that when two or more parties enter a contract, the outcome may fall short of one of the party’s expectations. When that is true, one party may file a lawsuit against the other for breach of contract.

If your Florida business is being sued for breach of contract, it is important to partner with a skilled team of litigation lawyers to raise all affirmative defenses early, so you will not be prevented from doing so later.

An affirmative defense does not contest the primary claims or facts of the allegation but renders the breach moot by asserting certain circumstances or mitigating factors that led to it.

Here is how we can help.

When it comes to business litigation and breach of contract claims, countless types of affirmative defenses can be presented inside and outside the courtroom.

Some of the most common assertions may include:

  • The contract is illegal.
  • The statute of limitations has expired.
  • You lacked the capacity to contract, voiding the agreement.
  • The contract was supposed to be in writing, negating an oral agreement.
  • The essential terms were never agreed upon, making the contract unenforceable.
  • You were fraudulently prompted to enter a contract under duress, lies, or undue influence.
  • The contract is grossly unfair, with the more powerful party taking advantage of the other by forcing unfair conditions, clauses, or waivers.

This is not an exhaustive list of affirmative defenses, as there are limitless possibilities our Florida business litigation attorneys design for each of our client’s unique needs.

Contact our Breach of Contract Litigation Attorney in Florida today to learn how we can help you customize your legal defense to help mitigate your breach of contract damages.

Call MLG Business Litigation Attorneys in Florida Today to Discuss Your Case

Contact our MLG Business Litigation Group attorney in Florida today at 888-904-2524 for a free case evaluation. We can help you understand your complete legal rights and options to get your business back on track.

Request A Free Case Evaluation

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