What happens when both parties breach a contract?

Answer 1

If a person breaks a contract he/she will be liable for all monetary damages that reasonably flow from the breach. This is strictly a civil liability. There are no criminal penalties involved in breaching a contract per se.

In addition to being liable for monetary damages, the person breaching will lose all rights to enforce the contract against the other party in the event that it becomes desirable to reinstate the contract.

Further, in certain circumstance, the other party can go to court to force the breaching party to perform what is required under the terms of the contract whether he/she wants to or not.

Certain exceptions to the rule on responsibility for damages exist. A contract for personal services may be breached and the other party simply has no obligation to pay the person breaching the contract. The breaching party cannot be forced to perform the services under the contract mainly because the Thirteenth Amendment to the US Constitution abolished slavery and involuntary servitude.

Answer 2

Don't. Unless you are under 18. That means no one can bind you into an unfair legal contract.

Answer

This is too complicated of a question to be answered in a single sentence. The costs of breaching a contract depend on the specific contract. Check your contract to see if there is a specific remedy outlined for what will happen if you breach. If not, you will probably be required to pay the cost of what you didn't complete. If you are contracted to pay and don't, you can be forced to pay. If forcing you to pay requires litigation, you may also have to pay the cost of that.

You should probably speak with a lawyer in your area before deciding whether to breach.

Answer 3

That depends!

First, no one goes around spontaneously enforcing contracts. So if Sally breaks a contract with Tom, if Tom chooses not to do anything about, nothing will happen (other than maybe that Tom won't do business with Sally anymore).

Tom could also choose to sue Sally. Usually a court will not force someone to fulfill a contract, but instead will grant damages. For example, if Sally promised to paint Tom's house for $500 but then doesn't, a court will not force Sally to paint it but, if it cost Tom $550 to pay someone else to paint his house, might make her pay Tom $50.

There are also many excuses Sally could offer a court about why she broke her contract (Tom broke it first, impossibility, and so on) that may or may not be successful.

This is an overly simple explanation but should give a general idea of what happens.

A judge ruled someone pay me damages and we agreed on a $500.00 amonth payment and He failed to make any payments.

Answer 4

If both you and the company signed a contract for you to work on certain days and the company does not honor the terms of that contract, they have broken the contract and are potentially liable for all backpay for days not worked. However, you would need a good labor lawyer to work through the contract and verify the company actually broke the contract - there are usually exceptions and exclusions in the subclauses of the contract that can allow a company to not schedule work on some contracted days for a variety of reasons. You could also contact the Department of Labor to see what your options are regarding pay and the contract.

Answer 5

Typically the consequences are monetary damages. However, a judge can also order a party to fulfill the contract.

Answer 6

Yes...depending on the contract i soppose...

Answer 7

Breach by both the parties, will put the contract to an end. Thereafter right to claim will arise in accordance with the damages suffered by the parties.