Negotiating a contract and knowing what to do and how to respond if one has been breached is important to any construction or real estate project. Contract terms that are negotiated and included in a properly executed construction or real estate contract govern the relationship between the parties, making them a very big deal.
The contract process includes contract negotiation, contract drafting and ensuring that the contract is properly executed to protect the rights and interests of the parties. A contract lays out the rights of the parties and obligations to one another and is a critically important document for the parties to a construction or real estate project or transaction to ensure they get right.
It is also important for parties to a contract to know how to respond if a contract dispute arises. If one party to the contract believes the other party has breached the contract between them, it can create significant disruption to the project and may be costly and result in significant delays. As a result, it is also important for a party who has suffered a breach of contract to be familiar with the potential legal remedies that may be available to them. Damages that may be available when a contract has been breached include monetary damages; specific performance of the contract; cancellation, or rescission, of the contract; or restitution.
Whatever the remedy sought is, it will depend on the situation and circumstances and the goals of the parties. Parties to a contract should know how to protect themselves when drafting and negotiating a contract and if a contract dispute arises.