22 Sep 2022

70

Breach of Contract Litigation: What You Need to Know

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Academic level: College

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Introduction 

Given a perfect world, agreements would be made and entered into, both sides of the deal would benefit, and each one of them will be pleased with whatever outcome. No disputes would occur. In this real-world where businesses have taken a toll, delays do happen, leading to accrual of financial problems and other events that are unexpected. These unexpected events do prevent any successful contract from reaching its initial goals. The first step to take in the event a contract is a breach is to write a letter. The following discussion sheds light on the legal concept of the violation of the agreement. Legal theory to be drawn from the case of Mary and Tom, who entered into a contract that involved a sum of $11,000. Mary lent Tom the amount of $11,000 with an agreement that he would pay back the money. 

Two requirements need to be met for this case to be heard in a federal court. For a federal court to have full jurisdiction over this case, both the Plaintiff and the defendant must come from different states. The claim to be addressed by a federal court must involve violation of the constitution of the United States, federal laws or treaties. Secondly, the amount in question should be more than $75,000 exclusive of costs and interest. A State court, on the other hand, has jurisdiction of handling cases that involved parties from the same State. It is the exercise of the state authority that has the right to legally binding decisions, and that affects the State. Mary's sum of money in the suit will be less than $75,000, and therefore the matter will be handled by a state court and not a federal court. 

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All the civil cases presented and which are filed with the superior court's clerk and in the case the court has found, or the parties involved have agreed that the amount in question is less than $50,000. An exception is an amount excluded by Rule 72, and the Arizona Rules shall be submitted and decided by an arbitrator. The arbitrators it assigned to cases following the provisions of ARS- 1133 and following Rules 72 to 76. These are the Arizona Civil Procedure Rules. Mary's amount in question is $11,000; therefore, its proceedings may require arbitration. 

In the case that the defendant(s) does not contradict the declaration produced by the Plaintiff under the compulsory arbitration of Rule number 72(e), the defendant shall certify the agreement on the plaintiff certificate. After certification, it shall be filed together with answers and then served as prescribed by Rule 5 of the Arizona Rules of Civil procedures. Afterward, the case shall be taken to arbitration as guided in Rule 72 to 76 of the Arizona Civil Procedure Rules. Mary's agreement was written on a napkin. She will present this, and it will have to be supported by witnesses. 

According to the Arizona Revised Statutes of recovery of attorney fees, in any case, a contested action arises out of the contract, either expressed or implied, the state court may award the party which is successful attorney fees that is reasonable. The judgment may obtain an equal or slightly more favorable amount to the party offering written form to settle the case. Then the party offering is deemed the successful party basing on the date of the offer. The court may now, at this point, award the party which is successful a reasonable amount of attorney fees. The action shall not, in any case, construed as changing, restricting, or prohibiting future or present contracts and/or statutes that may have to provide for, the attorney fees. 

The award of a reasonable fee by the court with reference to Revised Statutes shall be made in order to mitigate the ever-rising burden expenses that arise from litigation Stuckey (Clarke, 2019). This ensures the provision of a just defense or claim. 

Each party in the case is expected to provide full disclosure and serve the court in writing. Each party is also likely to provide disclosure of claims or defenses to all parties involved in the case (Ashraf, et al., 2018). The disclosure should include factual basis from each party, the legal theory with citations to the relevant judicial authorities, the name, telephone number, and address of each witness to be called at trial during the hearing of the case and substantial description of the subject matter in question. The disclosure shall be of electronically stored information, expert testimony, scope, and continuous duty. 

Every lawyer's practice is affected by ethical dilemmas. As an attorney, it would be, therefore, essential to make critical decisions that involve protecting attorney-client privilege (Conroy, 2016), such as information disclosure. In this case, Beatrice paying for the attorney and in the wake of a divorce with Tom wound clearly be taken as a conflict of interest. Conflict of interest would only be there if the attorney discloses information that would compromise the case. Due to the attorney-client privilege, her paying for the attorney shall not, in any case, affect the situation. 

The lender, Mary, and Tom did not follow legal guidelines in entering into an agreement. Their agreement was so quick and was not characterized by witnesses signing, guarantor, and an attorney was not present. It is a severe case to convince the court that she actually lent Tom money. Contracts based on good faith lending are usually complicated when it is a question of recovering money. 

In preparation for the deposition of the client, we will embark on reviewing critical points of the case before us. Mary will need to recite the substantial facts to the attorney, and that is important. It will begin by understanding legal facts around the case and review essential documents authored by the client. The client has to tell everything she knows about the relevant documents. Truthful disclosure won't hurt the situation. Inconsistent deposition testimony with the statement will hurt the client's case. The client has to understand the legal framework of the case in order to successfully complete the case (Hoffman, et al 2018). 

It is imperative to understand the difference between ethical duty when it is about confidentiality and lawyer-client privilege. Mary is an innocent party in this case, and the loss of her money could have been avoided if she could only take a few legal steps in signing her agreement with Tom. Although it is impossible to mitigate the occurrence of a loss before it occurs, it is therefore not the duty of the innocent of reducing the event of a breach, and they should not aggravate their injury. 

References 

Ashraf, M., & Sunder, J. (2018). Consumer Protection Regulation and the Cost of Equity: Evidence from Data Breach Disclosure Laws. Available at SSRN 3308551. 

Conroy, A. E. (2016). Reevaluating Attorney-Client Privilege in the Age of Hackers. Brook. L., Rev., 82, 1817. 

Hoffman, P. T., & Malone, D. M. (2018). The effective deposition: techniques and strategies that work. Wolters Kluwer Law & Business. 

Stuckey-Clarke, J. (2019). The International Trust Litigation Committee Report for jurisdictions other than the USA. Trusts & Trustees, 25(1), 156-159. 

West Law: Arizona Court Rules . Retrieved from: https://govt.westlaw.com/azrules/Index?__lrguid=ida0ecc3ea6df4ae2bb6b816a668c3683&amp%3BtransitionType=Default&amp%3BcontextData=%28sc.Default%29%29&transitionType=Default&contextData=%28sc.Default%29 

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StudyBounty. (2023, September 16). Breach of Contract Litigation: What You Need to Know.
https://studybounty.com/breach-of-contract-litigation-what-you-need-to-know-essay

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