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Our team of attorneys handle business litigation needs across Tennessee, including in Memphis, Jackson, Nashville and beyond. We handle commercial litigation cases for businesses both large and small on a variety of topics.
Breach of contract in Tennessee is accepted as a violation of the binding agreement, leading to a legal cause of action. “Procurement of Breach of Contract” under the statute T.C.A. 47-50-109 recognizes the violation as a civil wrong. Commonly known as contract disputes, every year a number of Tennessee breach of contract lawsuits are filed in the state seeking damages for violation of agreed terms and conditions. The aggrieved party is allowed to sue the person liable for inducing the breach.
Delineating Breach of Contract in Tennessee
A contract is a binding agreement, written or oral, between two or more parties. Breach of contract in Tennessee can be claimed when one party fails to respect his obligations by action or inaction and his conduct seems to be against the spirit of the agreement. The following are different types of contract violations recognized as a legal cause of action.
- Material Breach: Failure to perform according to the agreed terms causes the material breach of contract. It involves tangible evidence of a specific performance showing breach of contract conditions, such as wrong material supply. Any material breach of contract in Tennessee can lead to a substantial damage claim.
- Technical Breach: A minor infringement during the performance leading to deviation from the exact agreement terms causes a technical breach of contract in Tennessee. For example, failure to supply requisite color of material ordered. One can seek actual damages for such violations.
- Fundamental Breach: Repudiation of the basic postulate of an agreement leading to its cancellation is known as fundamental breach of contract in Tennessee. For example, delay in supply or failure to meet the deadline.
- Anticipatory Breach: Often highly contested, such disputes arise when one party perceives the other party’s condition as not suitable to maintain the terms of agreement, such as perceived failure to meet the deadline.
Breach of Contract in Tennessee: The Remedy
A civil action can be initiated under state law to seek remedy against breach of contract in Tennessee. To build a credible claim, such an action must establish
- Existence of a contract, written or verbal
- Breach of contract
- Plaintiff has suffered damages due to the breach
- Defendant is responsible for the breach
The available remedy you can seek for breach of contract in Tennessee can be broadly categorized into six areas.
- Specific Performance remedy or seeking a court order against the defendant to ensure adherence to the contract.
- Contract Rescission remedy or seeking cancellation of contract and recovery of financial payments.
- Contract Reformation remedy or seeking rewriting of contract with minor changes and suitable terms.
- Restitution of contract or seeking to enforce the contract with or without punitive action.
- Contract per se remedy or seeking curative action as mentioned in the contract.
- Compensation remedy or seeking damages for loss or suffering caused by the contract violation.
The Statute of Limitations
Any legal claim arising out of breach of contract in Tennessee must be filed within six years of the agreement violation. The lawsuit is usually filed in a small claim court, if compensation amount involved does not exceed $25,000. As the contract disputes involve intrinsic legal questions, it is always recommended to hire an experienced Tennessee breach of contract lawyer with credible and competent history in this field.
Defense of Actions
Our team of attorneys also defends businesses that are sued for wrongdoing. We would welcome the chance to speak with you.
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