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Construction company sues homeowner for breach of contract


While few businesses want contract litigation, sometimes circumstances related to a contract dispute require a party to enforce its contractual rights. A construction contract has led to a contract dispute in Louisiana. A construction company claims that a contract it entered into with a man for a home renovation was wrongfully canceled.

According to the construction company, it entered into a contract for almost $117,000 to perform renovations on the man's home. The construction company further alleges that it had purchased the necessary materials for the home renovation when the homeowner abruptly cancelled the contract in favor of having a relative perform the work.

The construction company has accused the homeowner of breach of contract and is claiming it is entitled to 25 percent of the contract. The construction company is seeking a total of $29,292.73 in damages.

A contract can be important to a business. Businesses may execute and rely on a variety of different types of contracts and contractual relationships for the success of the business.

Unfortunately, at times, in the business world, financial problems and delays can arise, as can other unexpected events, which may prevent a successful contractual relationship. While contract disputes may not be pleasant, they can be part of doing business. A breach of contract can occur in different ways, including when a party fails to perform obligations of the contract on time; does not perform in accordance with the terms of the contract; or does not perform at all. If any of these circumstances occur, there are legal remedies and responses available to the non-breaching party.

Business contracts, including contracts for builders, can sometimes end up in dispute. If that happens, it may be necessary to seek enforcement of the aggrieved party's legal rights.

Source: The Louisiana Record, "Construction company sues man over alleged breach of contract for $116K home renovation," Kyle Barnett, May 13, 2014

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