Breach of contract case study


Contract breach is certainly a breach when two parties or folks are entitled to certain state on working jointly and among the get together breaks them or will not abide to the problem. In a contract breach the innocent get together can record a lawsuit against the defendant. There are a lot of case where there is a breach of agreement, such cases are initial dealt with by the trail court and later could be fought in the courtroom of appeal how to make parchment writing paper? if either of the parties are not satisfied with the decisions of the trail courtroom and then if could also go further to an increased court.

The U.S. courtroom system is:

An exemplory case of a case of breach of deal is the case of jerry’s Components, L.L.C. v. Hillcrest Partners, No. 14-1625, 2015 Iowa App. LEXIS 654 (July 22, 2015)

Jerry’s Components, L.L.C. v. Hillcrest Partners

In this case Jerry’ components, plaintiff, enter and signed a lease arrangement were Hillcrest

Partners decided to lease a industrial space that they were likely to build. Hillcrest partners decided to build the industrial space regarding to Jerry’s hardware’s requirements. Jerry’s equipment informed Hillcrest that these were buying inventor, fixtures and digital for the store at the amount of $100,000.

Hillcrest partners’ neve started the construction because they were not in a position to find the required finance. The legal professional of Jerry’s hardware directed two letter to the defendant requesting info and explanation regarding the delay and stating that they were certainly not interesting in terminating the agreement. The next letter included the items and the loss which the plaintiff has incurred as a result of failure of the defendant. Hillcrest companions did not answer any of the letters plus they were also not interested in terminating the lease.

To decrease the amount of reduction, the plaintiff leased another sophisticated for its store. The brand new location was much less visiblw and it expected a large sum of renovation and upgrades. It also required an update in the electrical system and the paint system. The plaintiff later found that the gear he purchased this year 2010 were not up to the requirement in 2012. Later, in 2013, Jerry’s Hardware records a lawsuit against Hillcrest for breach of contract. After a bench trail the courtroom , the court discovered that the defendant acquired breached the agreement and awarded the plaintiff some $100,444.77 in unforeseen damages, cost of brand-new electrical systems and innovative paint system and the quantity of new equipment’s.

Court of Appeals Decision:

After the decision in the of the trail courtroom, the defendant authorized in the courtroom of appeal. The courtroom of appeal supported your choice of the trail courtroom. The defendant argued that the agreement had not been enforceable as they weren’t in a position to attain finances, that was one of the "condition precedent" in the deal. The court of appeal stated that the contract was enforceable, the courtroom found that remember the other conditions in the contract, nonfulfillment of "condition percent" simply gave the defendant to terminate the agreement by giving a written see to the plaintiff, and as the defendant did not choose the option to terminate the agreement, the contract was nonetheless valid. But, the courtroom of appeal made a switch in your choice that the defendant had not been liable to purchase the plaintiff’s harm of the property that was in the storage because it was the plaintiffs responsibility to retail outlet in a storage where

Conclusion of the circumstance:

The case was a twist as "condition precedent" were not the problem precedent at all, actually they were overruled because of other conditions in the deal. The district court didn’t abuse its discretion in its determinations on Hillcrest’s multiple motions to keep the trial. The court correctly determined the lease agreement was enforceable between the parties.

When an individual or a organization is involved with a breach in agreement it really is liable to and entitled to provide solution to the the non-breaching individual or organization. There are different types of remedies:

  • Damages- This is the most typical cure for a breach of contract. The breaching party has to pay for the sum of damage amount of the destruction incurred by the non-breaching party due to their conduct. There are numerous types of damages.
  1. Compensatory damages, is usually when the non-breaching get together is kept in a position identical to if the breach was not occurred.
  2. Punitive damage, are the destruction that the breaching get together must spend to the non-breaching party completely. This remedy is utilized when the breach is done in wrong full way.
  3. Nominal damage, is the remedy where the breach party must pay a nominal volume no actual loss is manufactured by the non-breaching get together.
  4. Liquidated damages, will be the damages that were determined by the parties in their contract.
  • Specific performance-

This remedy can be used when damages aren’t adequate to as a fix. In specific performance, the breaching get together is order to satisfy their duty as stated in the agreement. This solution is used when the issue of money will not matter in the agreement such as for example contract for selling a property and later the seller refuses, the court can order the seller and compel him to market the house as per the contract.

  • Cancellation and restitution-

Restitution as a cure mean that the non-breaching party is put back in a positon that it was in ahead of the agreement and cancellation ensures that both parties are free of charge for the obligations of the deal.

In the case of Jerry’s Hardware, L.L.C. v. Hillcrest Partners the remdy that was employed was the treatment of damages. There a few things that the defendant must have considered to avoid a lawsuit for breach of contract, Hillcrest should have not signed a agreement until and unless these were not sure of their finance. Signing a contract without their finance increased their risk of breaching it and secondly they should have replies to the letters which were mail to them by jerr’s attorney.


  • Two Iowa Breach of Agreement Circumstances, Two Judgments for Plaintiffs | Center for Agricultural Laws and Taxation. (2015, July 23). Retrieved March 01, 2017, from
  • JERRY’S Equipment, L.L.C., Plaintiff-Appellee/Cross-Appellant, vs. HILLCREST PARTNERS, an over-all partnership, CHARLES A. RUHL JR., and STEVEN FRY, Defendant-Appellants/Cross-Appellees. (n.d.). Retrieved March 01, 2017, from
  • Breach of Agreement and Lawsuits. (n.d.). Retrieved March 01, 2017, from
Tagged with:
Posted in article

























Licence Fees

Secure Returns Downloads

Information Brochure

A Portal is your clients business

The Need for Secure Client Portals

Article on why not just email


Contact us to find out how to receive 50% funding from your local NZTE Management Capability Development Voucher Scheme Regional Business Partner.

All programs have qualified for funding

Find out if you qualify!

Knowledge Bank & Benchmarking

Benchmarking Opportunities



See some examples of our Benchmark Reports

KB Sale Transaction vs ME2010

KB BCRC Valuation ME 2010

KB Benchmarking – Construction

KB Benchmarking – Retail