We are Here to Talk Contract disputes can arise in a business of any size. Small businesses and medium businesses often require similar services with contractual legal services as large businesses do, but tailored to their specific goals and considerations. The Fried Firm offers a vast amount of experience in helping creative, arts, and technology businesses navigate the arena of New York contract law. Our business law attorneys are available for a consultation about your specific concerns.
What is a Contract?
A contract is a legally binding agreement between two or more parties. Every contract in New York is governed by New York contract law, although not all enforceable agreements are written and examined by contract attorneys in advance. For instance, under New York law, if one party has already received a benefit from an oral agreement, it may be considered legally enforceable.
Capacity
In order for a party to agree to a contract, they must be considered capable. This means that they must be able to complete the terms, be of the minimum age to enter into a legally binding agreement, and be of sound mind.
Mutual agreement
Both parties must be in mutual agreement for a contract to be considered legally binding. Contracts where only one party has signed, for instance, do not meet this qualification.
Consideration
Consideration involves the value of the exchange. New York contract law encourages a clear exchange, meaning that parties should not work for free. Examples of consideration include wages for hire, benefits, or in-kind goods. Consideration is whatever is the answer to the question, “what do I get from this agreement?” It may be the right to use a property, the royalties you will receive from an artwork, or more, but there must be something of value involved.
Legality
A contract must follow New York State law and be drawn up with certain considerations in order to be considered legal. For instance, if the value of a contract in New York State is more than $500, it must be drawn up in writing in order to be considered enforceable.
Breach of contract remedies include these damages:
General damages
General damages are the monetary amount that qualifies the harm done by the breach of contract. Most breach of contract lawsuits are focused on pursuing monetary damages as a result of the breach. This can include unpaid wages or compensation in employment contracts as well as additional expenses.
Consequential damages
Consequential damages are losses beyond the actual compensatory loss. They might involve expected profits or benefits from the contract. For instance, if you were expecting to install a piece at an art gallery that would have compensated you $5,000, you might decline to exhibit the artwork in any other location. When the art gallery reneges on the contract and pulls your showcase, you have lost out on not only the initial $5,000 payment but also on other possible profits from exhibition offers you would have accepted instead of their contract, licensing from gift shop merchandise, a portion of entry fees, additional exposure, and more. These are known as consequential damages.
Reliance
You may have undertaken additional costs in order to exhibit your piece at the art gallery, in the above example. For instance, say you purchased new canvases, paints, and supplies in order to finish the piece for the gallery’s deadline. You may have also contracted with a moving company to reliably transport the artwork. All of these are examples of reliance damages, or compensation you may be owed due to relying upon a reasonable premise from the contract that the other party broke.
Specific performance
In cases where monetary damages are not appropriate, a breach of contract lawsuit might instead focus on specific performance. This is a lawsuit that revolves around enforcing the contract, and not about compensating the other party with fair payments in exchange for the harm done.
How Our New York Contract Lawyers Help Draft and Protect Your Agreement
The Fried Firm offers you insight into what you may be able to recover with our knowledgeable and skilled attorneys in all aspects of contract law. Our team has expertise in negotiating terms and drafting contracts as well as experience with breach of contract claims in New York.
Types of Business Contracts
Our attorneys specialize in the following kinds of business contracts:
- Business to business contracts
- Employment contracts
- Independent Contractor Agreements
- Real Estate contracts
- Buying and Selling products or services agreements
- and more
Services Provided by our New York Contract Lawyers
The following are examples of the legal services that our New York contract lawyers can provide:
Reviewing contracts
Never sign a business contract until you have had it reviewed by a qualified contract lawyer. Reviewing a contract ensures that not only are the terms favorable, but also that you have a chance to prepare for all areas of enforceability.
Negotiating contracts
Most deals do not arise without prior conversation and some degree of consent. There may be private understandings or prior agreements involved in negotiating a contract. An attorney can help you navigate these elements and limit your exposure to damages.
Drafting contracts
Be wary when using technical terms or words with a legal meaning when drawing up a contract without the help of a contract lawyer. Our team at The Fried Firm can ensure that your contract is drafted using consistent language, avoiding onerous clauses, and using the appropriate technical terms.
Contract litigation
Contract litigation involves proving certain critical standards in order to bring a claim for damages under New York law.
At The Fried Firm, our team can bring an expert eye to any agreements you have signed to ensure that you recover the fullest extent allowable by law.
Contract Litigation Lawyers in New York
The Fried Firm offers a complimentary initial consultation with our New York contract litigation lawyers to help discover if we can help with your specific concern. We do not take on cases where we cannot offer our clients substantial benefits.
Breach of Contract
New York law insists upon a three day window during which time the consumer can cancel a contract without breach of contract consequences. These kinds of contracts are subject to the three day window cancellation period:
- Health club memberships
- Home improvement contracts
- Contracts made via telephone sale
- Contracts made via door to door sale
- Campground membership contracts
- Dating service contracts
- Home food service plans, like meal preparation services or grocery delivery services
- Credit service contracts
In general, however, New York contract law does not allow for a “cooling off period”, like some states do, where either party is able to walk away without incurring damages. New York breach of contract law generally involves one party that does not deliver agreed-upon goods or services within the specified timeline, or when the terms of the contract are otherwise not fulfilled. Shoddy work or failure to compensate one party can also fall under the scope of New York breach of contract law.
In order to bring a breach of contract lawsuit in New York, you will need to prove that you had a contract or legally binding understanding with the other party, that you fulfilled your end of the bargain, that the other party did not comply, and that you suffered monetary damages as a result of their failure. Not all contract law is this simple, however. For instance, some contracts may be improperly drawn up, and have enforceability issues. You may be able to illustrate under New York law that even though you did not fulfill your end of the contract, you had an acceptable and legally binding reason for why you did not do so. You must also illustrate that the party’s failure to comply with the terms of the contract was “material”.
For instance, in the art gallery breach of contract from above, say that the gallery reneged on their promise to showcase your work on the weekend, but offered you a later date. A contract attorney might raise the issue of whether or not this disparity was material. For instance, was the initial date on a weekend where the gallery expected a high level of foot traffic, and the new date was less desirable? Had you put prior work into marketing the initial date for the opening, and invested advertising funds into bringing clientele to the gallery? This might be an example of a material breach, even though your work still has the option to be displayed.
Recovery in Contract Disputes
A New York contract dispute can result in recovering damages from losses suffered due to:
- Failing to pay for products or services
- Failing to deliver products or services
- Missing important deadlines
- Failing to perform obligations of related secondary contracts. This might include loans or leases which cause harm to your business, or work stoppage periods
Any of these issues might lead you to recover direct damages (the missing monetary amount specified in the contract) as well as additional consequential damages.
Contract Dispute Lawyer
A contract dispute lawyer can help you build your claim and ensure that you are not taken advantage of. Contracts for businesses often involve special considerations and marketplace information. For instance, contracts that omit crucial details such as pricing, delivery dates, payment terms, and performance requirements may be difficult to enforce under New York law. Failing to consider these terms as well as New York business regulations such as licensing, data privacy, and consumer protection laws can lead to additional legal trouble when attempting to enforce a business contract.
New York Contract Attorney
Whether you need help reviewing a contract, drafting a contract, enforcing a contract or pursuing damages after a breach of contract claim, The Fried Firm is available for a consultation with our expert New York contract lawyers. We specialize in helping creative businesses reach their full potential without getting side-tracked or derailed by New York bureaucracy or taken advantage of by loopholes in New York contract law. We bring the same passion, bespoke approach, and expertise to the law that our clients bring to their creative pursuits. Contact us today for help with your contract concerns.
