BREACH OF CONTRACT

What Makes A Valid Contract?

A valid contract usually contains three elements: (1) an offer, (2) acceptance, and (3) consideration.

Offer. Under Arizona law, an offer for a contract is a statement that offers something for sale, employment, barter, lease, trade, and more. Consideration can be verbal or written.
Acceptance. Parties accept the terms of the contract either in writing, verbally (when allowed under law), or by performance.
Consideration. The third element, consideration, is what is exchanged between parties to the contract. It is a critical component to any contract.

Contracts can be verbal or in writing. However, some contracts must be written to be considered valid. The statutory code outlines the types of contracts that must be in writing on order to be valid such as employment contracts.

What Is A Breach Of Contract?

Under Arizona law, a breach of contract occurs when one party fails to fulfil their obligations under the contract (in whole or in part) without a legal excuse. A breach of contract might occur when an employer doesn’t pay the wages in the contract or terminates the contract early (if the employment contract is for term length).

The breach can be considered material, immaterial, or anticipatory depending on the type of damages the breaching party caused the non-breaching party. A material breach happens when the breaching party fails to perform a duty under the contract that the main purpose of the contract is unfulfilled. An immaterial breach occurs when the majority of the duties pursuant to the contract have been completed, but the remaining duties have not been performed.

If another party breaches a contract, what happens?

Depending on the severity and type of breach, the non-breaching party can seek legal remedies, money damages, or equitable relief. Certain legal remedies are awarded in specific situations. Regardless of the type of breach, the non-breaching party will need to establish a few facts.

Prove that a valid contract existed between the parties
Show that the contract was breached.

Demonstrate how the other party was responsible for the breach.
And that the other party’s breach caused damages.

We Protect Arizona Employees’ Rights

If the other party breached the contract, as the non-breaching party, contacting an attorney is a good way to get advice on how to proceed. However, Arizona has different statute of limitations for the breach depending on the contract. If you think you’ve been the victim of a contract breach, contact an attorney to find out what your options are.

We offer one-on-one consultations with an experienced Arizona employment lawyer and specialized knowledge of federal, state and local laws. To schedule a consultation with an employment discrimination lawyer, contact our office today.

Contracts are made between parties for a variety of goods, services, and employment. Sometimes parties to a contract no longer want to be bound to the terms contained within the agreement. Either the parties can mutually agree to part ways or a party can breach the contract. When a breach of contract occurs, the non-breaching party may have a claim for a legal remedy, such as monetary damages, restitution, or equitable remedies.

Q&As

Breach of Contract

Q: What is a breach of contract? A: A breach of contract is when one party violates a provision of a contract. A contract must include three parts: (1) offer (2) acceptance and (3) consideration, which is what will be exchanged. In Arizona, the law allows for verbal contracts in some cases, but most contracts must be written to be considered valid. A.R.S. § 44-101. A.R.S. Pursuant to A.R.S. §23-1501 an employment contract must be a written agreement.

Q: How is breach of contract proven? A: To prove breach of contract, there are four elements that must be met: (1) the contract is valid; (2) the non-breaching party must show that they fulfilled their commitments or that there is a justifiable reason for not doing so; (3) the breaching party failed to fulfil their obligations; and (4) demonstrate damages caused by the breach.

Q: What types of actions by an employer can constitute breach of contract? A: A breach of employment contract in Arizona can occur in several ways. For instance, if an employer fails to pay the agreed-upon salary or wages, withholds pay, or doesn’t honor the compensation outlined in the contract, it may be considered a breach. Similarly, if benefits such as health insurance, vacation days, or retirement benefits promised in the contract are not provided, that could also be a violation. Wrongful termination, such as firing an employee before the contract term ends without just cause or not adhering to specified termination clauses, is another example. Employers may also breach a contract by failing to honor non-compete or non-disclosure agreements, or using intellectual property in ways not authorized. Additionally, unilateral changes in job duties, work location, or schedule without mutual consent, as well as failing to provide promised training or career development opportunities, can constitute breaches.

Q: What is the statute of limitations for breach of contract? A: Pursuant to A.R.S. § 12-541, an action for breach of a written employment contract must commence within one year after the cause of action accrues, meaning from when the breach occurs.

Q: What kind of relief can I seek for breach of contract? A: Relief available depends on the type of breach and the non-breaching party may be able to seek money damages or equitable relief, which can mean a court order compelling the employer to perform or refrain from certain actions.

We Protect Arizona Employees’ Rights

At Robinson Law Offices, we believe that every Arizona employee has the right to be free from discrimination in the workplace. That’s why we pride ourselves on our commitment to protect workers and their jobs from illegal practices.