How is a construction contract breached in Tennessee?

Nashville, TN – When a construction project is not completed or missing certain specifications, this can cause huge financial losses to all parties involved. There are certain remedies available to parties affected by this kind of contract breach, but the party filing the lawsuit must also prove that a valid contract existed and relevant terms were violated. 

The elements of a valid contract

In any breach of contract lawsuit, the court will look to see that a valid contract was actually formed by the parties involved. This will include an offer, acceptance, and consideration. If any of the elements are missing, the specific terms or how they are violated will not matter, as the parties cannot be bound to a document that does not meet the formal legal definition of a contract. The initial contract should always be drafted with the assistance of an experienced business attorney and formalized in writing. 

The ways that the terms of a construction contract are violated

There are a few categories of violations or problems that tend to cover most legitimate breaches of a construction contract. The first is related to serious problems or defects with the expected performance of the contract. This would mean that the structure was either incomplete or finished in a way that it cannot be used as intended. The second category of problems is related to timing and scheduling. If a project is running several months behind, there may be significant lost profits for the other businesses or subcontractors that had expected to have a completed project. There is also the possibility that one party never intended to complete their end of the bargain as written in the document, which can lead to legal action for fraud or misrepresentation.  

Ways to remedy the situation

It is common for breaches of construction contracts to be remedied by various forms of communication or negotiation between the parties. This tends to be effective because both sides can get what they need or close to their original expectations without having to deal with the costs or formalities of a lawsuit. However, sometimes formal legal action is necessary. A court may rule that one side violated the agreement and require payment of monetary damages or specific performance to complete the contract in cases of unique structures and property. There are even situations where a court may simply rescind the contract and allow both sides to walk away from the agreement if it cannot be completed.   

Help from a business lawyer

The Law Office of George R. Fusner is available to help businesses with their legal issues. The firm focuses on various matters related to contract law, misrepresentation, fraud, and real estate transactions. 

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027

615-251-0005

gfusnerlaw.com