(309) 306-1095 tom@collateralbase.com

Contract Dispute?

Breach of Contract
breach of contract We enter into a number of contracts each and every day. Contracts are made on a regular basis, and it doesn’t need to be written or signed by both parties in order for it to be considered a legal contract. For example, if you pay for a ticket at a movie, the theater is required to give you a seat to the show, otherwise they are in breach of the contract that is established when you place an order at their box office. Similarly, when you pay your mortgage or your credit card bill, you’re holding up your end of the contract. You’re probably involved in a bunch of contracts at the moment, but what happens when you or the other party fails to hold up their end of the bargain? That’s the focus of today’s blog on the basics of breach of contract laws in Illinois.

Types Of Legal Contracts

We rattled off a couple of examples of contracts you may already be involved in, but there are even more types of contract that are subject to breach of contract laws here in Illinois. Some common contracts that end up going before a judge include:

  • Business-Employee Contracts
  • Non-compete/Non-disclosure
  • Real estate/Property transactions
  • Rental or lease agreements
  • Business-to-business contracts
  • Utilities contracts (phone, Internet, cable, etc.)
  • Purchase of goods/services

Contract Formation and Breach of Contract

Under Illinois law, a contract is assumed to have been formed when three conditions are met. Those conditions are:

  • An offer by one party
  • An acceptance by a second party
  • A “consideration” that is exchanged (money for goods or services, etc.)

If these conditions are met, it can be assumed that a legal contract has been formed. The contract does not need to be drafted and then signed by both parties in order to be valid, although it’s much easier to prove the other party did not hold up their end of the bargain if you have a written agreement on the exact exchange of considerations. You should also get a receipt or draw up a contract for serious matters. A contract is said to be breached if one party fails to provide their consideration. If you believe someone has breached a contract with you, you’ll have to prove three factors exist. You need to prove that all three of these factors exist in order to have a valid claim. They are:

  • A legal contract exists
  • One party failed to live up to their end of the bargain
  • One party suffered damages as a result of breached contract

Contract Dispute?

How to file a breach of contract lawsuit?

breach of contract lawsuitContracts are considered to be the core of any business activity. Whether big or small all transactions constitute an agreement between the parties involved to contract mutual obligations in order to receive a benefit, typically money.. 

What is a breach of contract?

Sometimes, one of the parties fails in holding their end of the bargain, leaving the other one, who performed its obligation, without the promised benefit. That’s what we call a Breach of Contract, and as the nonbreaching part of the contract you have the right to file a lawsuit against the breaching party. Here is what you need to know about filing a breach of contract lawsuit.

How do I file a Breach of Contract Lawsuit?

The first thing you need to make sure is that you have a legally binding contract, whereof which one party failed to hold their end of the bargain, making the other or others suffer damages as a result of the “default.”consequence. Once you are sure the contract was breached you should: 

  • Re-read the contract: Contracts usually have sections that discuss what the parties can do in the event of a breach. For example, the contract may establish a certain time frame in which the party can fix the issue before the other is permitted to file a lawsuit. Or they could also dictate what methods measure the parties agreed settle on using in case of a breach of contract, for instance it could say the parties should resolve their disputes using mediation or arbitration exclusively.
  • Look for the four main elements to the breach of contract and start preparing a way to prove them:
    • The presence of a contract considered valid in accordance to law
    • The evidence of performance by the non-breaching party of their upheld end of the bargain beside not being mutual.
    • Proof of a substantial violation of the terms of the contract. Minor errors generally don’t qualify for breach of contract terms 
    • Lastly, take into consideration that damages are a crucial part of a breach of contract lawsuit and therefore you must be able to demonstrate they exist and were caused exclusively by the breach.
  • contract attorneyNow you can file a breach of the contract claim in the appropriate court, which is often:
    •  where the defendant resides, 
    • where its registered agent is in case of a business, or 
    • where the transaction occurred.. 

You should consult with a local breach contract law attorney who will be able to provide specific legal advice.

Where can I file a Breach of contract Lawsuit? 

You may file a claim for breach of contract in any court where there is proper jurisdiction and venue, unless the contract otherwise dictates where the claim must be filed. Take into consideration that laws may be more beneficial for your position depending on the jurisdiction, so having a lawyer that knows where to file your lawsuit could determine completely if you win or lose your case.

When can I file a Breach of Contract Lawsuit?

There is something called the Statute of Limitations, and it states the maximum time for actions to be initiated from the moment the wrong was caused. The state of Illinois establishes for breach of contract law a maximum of 10 years for written contracts, 5 years maximum for oral contracts, and for certain sales contracts a shorter limit of 4 years.

You may ask yourself: When does the countdown start? The general rule is that it starts running the moment the breach happened. Meaning the day the violation of the terms occur, in case the general rules does not apply to your case your lawyer will know how to guide you.


Do I need a lawyer to file a Breach of contract lawsuit?

There is only so much you can learn from the internet. As much as it is important for you to research your case and learn about your options, an experienced prepared lawyer could give you an estimate on your lawsuit determine the destiny of your suit. 

Not only will your lawyer help you prepare your case and represent you in court, they could assist you in mediation and arbitration procedures, and their years of experience will allow you not to worry about the most challenging aspects of the contract law. If you are looking for a Breach Contract Law Attorney do not hesitate to contact us. 

Should I file a Breach of a contract lawsuit ?

If you are uncertain whether initiating a lawsuit for the breach of you contract or not, don’t forget to think of:

  • The amount in controversy – more money means more likely to sue
  • The ability to collect on the judgment.
  • The ruling in your favor would mean the breaching party will have to honor your commitment.
  • The damage done to you would be compensated monetarily. You should not be responsible for repairing the losses caused by a breach contract you complied to.
  • Damages may include lost profits. You should also take into consideration the profits that would have been earned during the loss period if the damaging act hadn’t occurred

Don’t forget successful businesses maintain their success by protecting their interests. Not taking action when a violation of an agreement happens and damage is done to you or your business is never going to result in a favorable outcome. With specialized legal advice you will be provided with all your options and guided in the best way through the process 


Thomas Howard

Thomas Howard

Bank Lawyer

Whether this is your first land use issue or most recent, our office has helped people and businesses alike.


Each day, I answer one free question regarding business litigation issues.

Ask yours today.

What are valuation caps?

What are valuation caps?

A valuation cap is a term of a convertible note or a SAFE. It is also a great way to attract investors to any startup, providing them with an incentive to invest. Starting a successful financing round for your business will expose you to a slew of new terms. It is...

How to add a new member to an LLC

How to add a new member to an LLC

Generally speaking, to add a new member to any LLC, you must first follow the operating agreement or the state law regarding LLCs. Though there are some additional things to take into consideration. Most operating agreements lay out how to add a new partner on their...

Subscription Agreements

Subscription Agreements

A subscription agreement is an investor's request to become a member of a limited partnership (LP). It also serves as a two-way warranty between a corporation and a new shareholder (subscriber). The company intends to sell a specific number of shares at a fixed price...

Need A Business Lawyer?

Call our law offices with your legal questions for help on:

  1. real estate contracts
  2. business contract disputes
  3. Shareholder litigation
  4. cannabis business
  5. fraud actions
  6. mechanic's liens


Share This