When you enter into a contract with a client, both parties agree to certain terms outlined in the document. Both parties have a responsibility to uphold their end of the contract and fulfill the terms according to the document. These terms often include factors, such as materials needed to complete the job, a clear definition of what the work to perform and a reasonable time period required to finish the job. As you create the contract documentation, it is critical to make sure the terms are clear and precise.
One major factor when writing a contract involves accounting for uncontrollable details, such as bad weather conditions that may delay the time period, as well as hardships you may encounter when getting zoning licenses and other critical permits. Keep in mind that the cost of materials may unexpectedly increase.
Either party may claim a breach of contract if they feel as though the terms of the contract have been violated. The courts may consider the following when determining whether a breach has been made:
- How clear and concise the wording was when creating the document
- What terms were in place when the contract was written
- Whether the deception was intentional when creating the contract
- Whether both parties knew what they were signing
- What extent of the contract was fulfilled other than the breach
- How the breach compromised the finances of either party
The party that files a breach of contract may receive compensation for lost time, labor and/or materials.