Breach of Contract in Maryland
Breach of Contract in Maryland
There are two types of contracts out there: verbal (oral) or written. In many cases, a breach of contract can causes a great deal of confusion. A contract consists of a voluntary promise between competent parties to do, or not to do, something, which the law will enforce. These binding promises can be verbal or written. A contract could obligate someone even if he or she wants to call the deal off before receiving anything from the other side. The details of the contract are called its provisions or terms. American Bar Association breach of contract in maryland
Maryland Contract Law is located in Title 2 Sales Md. Commercial Law Code Ann. § 2-206 (2012): § 2-206. Offer and acceptance in formation of contract (1) Unless otherwise unambiguously indicated by the language or circumstances (a) An offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances; (b) An order or other offer to buy goods for prompt or current shipment shall be construed as inviting acceptance either by a prompt promise to ship or by the prompt or current shipment of conforming or nonconforming goods, but such a shipment of nonconforming goods does not constitute an acceptance if the seller seasonably notifies the buyer that the shipment is offered only as an accommodation to the buyer. (2) Where the beginning of a requested performance is a reasonable mode of acceptance an offeror who is not notified of acceptance within a reasonable time may treat the offer as having lapsed before acceptance.breach of contract in maryland
In order for a promise to qualify as a contract, it has to be supported by the exchange of: Something of value between the participants or parties. This something is called consideration.breach of contract in maryland
To summarize, we are in need for three elements for their to be a valid contract: Offer, Acceptance, and Consideration.breach of contract in maryland
Applicability of a terms:
Suppose that a friend agrees to buy your car for $1,000. Thats the Offer and the Acceptance. The consideration of $1,000 for the car is also present. In conclusion, there is a valid and enforceable contract.breach of contract in maryland
So what happens if someone does not keep their word, and acts inconsistent to the deal? In legal terms it is called “Breach of Contract”.
What is a breach of contract?
A breach of contract – also called a default – is one party’s failure, without a legally valid excuse, to live up to any of his or her responsibilities under a contract. A breach can occur by:
· failure to perform as promised;
· making it impossible for the other party to perform;
· repudiation of the contract (announcing an intent not to perform).
When a contact has been breached, the contract can be renegotiated or reconsidered. If this isn’t an option, state or federal consumer protection agencies can help or alternative dispute resolutions can be used. If nothing can be done by these means, then a party can file suit.
Filing Suit – If the amount in question in less than $5000, the matter may be settled in small claims court. If the amount in question is over $10000 the case will be handled in the Circuit Court and it may be advisable to discuss the matter with an attorney. Amounts between $5000 and $10000 can be handled in either District or Circuit Court.
Statute of Limitations – In Maryland, the usual Statute of Limitations for filing suit is 3 years, though there are some exceptions:
Unless specifically stated in the Contract, it is only a breach of contract when the violation of the contract term was material. Material? So this would mean that a minor breach or an accidental ‘small’ breach may not be sufficient to equate a violation of the contract or legal claim.
Md. COMMERCIAL LAW Code Ann. § 22-701 (2012) breach of contract in maryland
§ 22-701. Breach of contract; material breach
(a) In general. — Whether a party is in breach of contract is determined by the agreement or, in the absence of agreement, this title. A breach occurs if a party without legal excuse fails to perform an obligation in a timely manner, repudiates a contract, or exceeds a contractual use term, or otherwise is not in compliance with an obligation placed on it by this title or the agreement. A breach, whether or not material, entitles the aggrieved party to its remedies. Whether a breach of a contractual use term is an infringement or a misappropriation is determined by applicable informational property rights law.
(b) Material breach. — A breach of contract is material if:
(1) The contract so provides; breach of contract in maryland
(2) The breach is a substantial failure to perform a term that is an essential element of the agreement; or
(3) The circumstances, including the language of the agreement, the reasonable expectations of the parties, the standards and practices of the business, trade, or industry, and the character of the breach, indicate that:
(A) The breach caused or is likely to cause substantial harm to the aggrieved party; or
(B) The breach substantially deprived or is likely substantially to deprive the aggrieved party of a significant benefit it reasonably expected under the contract.breach of contract in maryland
(c) Cumulative nonmaterial breaches. — The cumulative effect of nonmaterial breaches may be material. breach of contract in maryland
*Disclaimer: None of this information on this page should be used as legal advice or relied upon. Please consult your attorney regarding your specific case. This blog is general information that may be outdated over a period of time