Breaching of Contract: There are, in general, three questions that you must be able to answer before you can

seriously consider filing a lawsuit. First, you must ask yourself if you have a good case. Second, you have to ask if you would be happy with a settlement or going to mediation if you end up filing a lawsuit. Finally, assuming you do win your lawsuit, you need to ask yourself whether or not you will be able to collect any form of judgment. A plaintiff must prove all of the following elements for a breach of contract, including 1. Good case mean you have strong evidence of against breaching party. To ensure you have a "good case", you, the plaintiff, will need to go down this checklist of elements and make sure that you can satisfy or prove each one. Depending upon the cause of action in your lawsuit 2. First it should be decided whether it is immaterial breach or material breach. 3. A valid contract existed. In order for you to even start a breach of contract suit, you must be able to show that a valid contract existed between you and the other party. If you have a written contract that has been signed by both parties, then this is relatively straight forward. However, if you only had an oral agreement or some other handshake agreement with the contractor, you may have a more difficult time proving that an enforceable contract existed. 4. Performance. In order to succeed in a breach of contract action, you must be able to show that you held up your end of the bargain under the terms of the contract. In this situation, you have paid the money to the contractor, thus fulfilling your obligation. 5. Breach. It seems pretty straightforward that in order to win a breach of contract suit, you must prove that the other party breached the contract, meaning that they did not do what they promised to do. Here, you will need to show that the contractor did not complete the kitchen renovation. 6. Damages. Here, you must be able to prove your economic damages. For instance, in this situation, you may need to hire another contractor in order to complete the job that the first contractor failed to do. In addition, if you run a business out of your kitchen, you may be able include any lost profits in your damage calculation. Ways for settlements with breach party: 1. The best solution to a problem is to simply sit down with the other side and talk about the problem to see if a resolution can be reached without resulting to court action. Additionally, mediation services have become quite popular and prevalent, and free and low-cost mediation can often be found in major cities. Mediation is a great way to have a neutral, third-party sit in on a conversation and suggest ways that a problem could be solved. 2. Keep in mind that you may be required to try mediation or arbitration before heading to court. For instance, many contracts routinely include arbitration clauses that require the parties to attempt to mediate or arbitrate a dispute before filing lawsuits. Similarly, many courts encourage parties in a lawsuit to mediate their differences before setting an actual trial date. Other ways of fulfilling your damages instead of lawsuit. 1. Finally, before suing, you should consider different ways to address the issue of judgment collection. Can be explain by example suppose that you have hired a contractor to do a kitchen renovation in your home. The contractor, instead of starting the work, takes your money, only starts performance by ripping out the kitchen floor, and then buys beer for his employees with

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the rest of your money. You decide to sue under a theory that the contractor broke the contract To demonstrate a possible solution using Example involving the kitchen renovation, if you obtain a judgment against the contractor and he refuses to pay, you have a number of options. If the contractor is personally responsible for his business, you may be able to (with the help of the sheriff) garnish his wages or place liens on his property. In addition, if the contractor is licensed, you may be able to get the state licensing board to revoke his contractor's license until the judgment is satisfied (keep in mind, however, that if you get this license revoked, he may have no way to make money in order to satisfy the judgment). After considering all possible courses of action to collect, it may or may not be in your best interest to file a lawsuit. Come Up With a Starting Settlement Amount If you are the potential plaintiff: Start by offering to shave about 20% off your original demand, in exchange for a settlement. Any less and you won't be taken seriously. Anymore and you're giving away too much too soon. If you are the potential defendant: If the plaintiff probably does have a decent case, start by offering about 50% of what is demanded. This should be enough to start negotiations. Many plaintiffs will ultimately agree to knock as much as one-third off their original demand to save the time and trouble of going to court. Consider the time at stake. To arrive at a compromise offer, consider how much it's worth to you to eliminate the time and aggravation of going to court. One good approach is to put a dollar value on an hour of your time and then multiply by the number of hours you estimate that going to court will take. Weigh your chances of winning a lawsuit. Take into consideration the chance that you might lose, or get less than you ask for. In a recent study of 996 small claims cases that actually went to trial: only 32% resulted in the plaintiff receiving 100% of the amount claimed 22% resulted in the plaintiff getting between 50% and 100% of the amount claimed 20% resulted in the plaintiff getting less than half; and In 26% of the cases, the plaintiff got nothing at all.