Payton & Associates, LLC
Commercial Litigation Attorneys
Miami, Florida

Obligations when there is an anticipatory breach of contract

Businesses in Florida enter into contracts every day and by doing so they are agreeing to be bound by the terms of the contract. This means they must perform the obligations they agreed to perform. This could be either to perform certain services, provide certain products or perhaps simply pay for another company's goods or services. Another aspect of many contracts is that the parties to the contract must complete their obligations within a certain timeframe.

When companies do not perform their obligations within the proper timeframes or not at all they are in breach of contract. This means that the other party or parties to the contract can seek damages against the breaching party. However, there are certain situations when one party makes it clear that they are not going to perform their obligations before it is actually time for them to perform them. When this occurs it is known as anticipatory breach of contract.

If the party has made it clear that they will not perform their obligations, which could be done by clear written or verbal refusal or by conduct, the other party can file a claim for breach of contract before the breach technically occurs. Just like a material breach of contract, the party can seek any and all damages they will suffer due to the breach of contract. The party seeking the breach of contract claim also is no longer obligated to perform their obligations under the contract.

Most companies in Florida are very familiar with contracts and probably are parties to many different ones at a time. These contracts require them to perform many different obligations and they expect the other party to do the same. However, there are many times when this does not occur and one party breaches the contract. If this occurs the non-breaching party can suffer damages and seek a remedy in court. Experienced attorneys understand contract law and may be able to guide one through the process.

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