Because contracts can be specialized based on the business relationship they govern, contract disputes can also vary. Because of the different types of contract disputes that can arise, it is important to understand the legal options available if a contract has been breached. A homeowner in Louisiana is facing a breach of contract lawsuit brought by a home elevation company.
The home elevation company is suing the homeowner alleging she failed to make payments on a $30,000 loan for raising the home. The home elevation company asserts that it entered into a contract with the homeowner to lift the homeowner's home in Louisiana. The total cost of the project, according to the home elevation company, was $148,000. Nearly all of the $148,000, with the exception of $30,000, was paid for by a grant. The home elevation company asserts that the homeowner was responsible to pay the remaining $30,000 and signed a contract to repay the $33,000 in monthly installments until the debt was repaid.
According to the home elevation company, the homeowner missed 25 payments totaling $3,333.25 and refused to make any further payments as of this past fall. The home elevation company has accused the homeowner of breach of contract. A breach of contract can be serious for the non-breaching party which is why it is important for the non-breaching party to understand the different options that may be available when a contract has been breached.
Depending on the goals of the party, and the nature of the contract, it may be possible to remedy the breach through litigation or without the need for litigation through negotiation. Contractual relationships are important and are taken seriously which is why the legal system offers resources and alternatives to resolve any number of contract disputes.
Source: The Louisiana Record, "Levco sues customer for failing to pay for home elevation for over two years," Kyle Barnett, May 6, 2015