To establish a breach of contract, there must be a legally binding contract (agreement) or bargained-for exchange that is then not honored by one or more of the parties to the contract. If one party fails to perform the contract in its entirety, or prevents the performance of the contract by the other party, the situation is easier to understand. The situation becomes more complex when the argument is over something subjective in nature, such as the quality of product, or the timing of work. The party who breaches the contract by not performing or improperly performing opens a possible claim for damages by the other party. When the contract is breached, the non-breaching party is relieved of his commitments under the contract.
The court in Giacone v. Virtual Officeware, LLC, 2014 WL 7070205, at *17 (W.D. Pa. Dec. 12, 2014) determined that a new sales strategy deployed at Virtual Officeware, LLC (“VOW”) resulted in a breach of contract. The Plaintiff was demoted during a restructuring of VOW’s sales department and lost benefits that accompanied his title, then forced to resign once he was no longer receiving compensation that was promised by his contract. VOW contended that their new strategy was not a breach because the employment agreement came before the restructuring of the department. The Defense also argued the commission terms in the agreement were only attached due to a mutual mistake.
The court found the employment agreement was a valid contract, which was breached by the Defendant. The violation caused the Plaintiff to lose his title, repeat customers, and commissions. Judgment was entered in favor of the Plaintiff in the amount of $883,871 for lost wages and $220,968 in liquidated damages.
Philadelphia commercial contract lawyers at Sidkoff, Pincus & Green P.C. are experienced in handing all aspects of business law and commercial litigation. Our dedicated team of commercial contract attorneys in Philadelphia assist clients in a wide range of complex litigation matters, including breach of contract. Call us at 215-574-0600 to schedule a consultation or submit an online contact form.