Fraud claims and breach of contract are very different legal cases. It should be noted, however, that there are various circumstances where a breach of contract can involve fraud. For the most part, fraud claims cannot be filed simultaneous to a breach of contract, when both are based on the same set of facts and issues.
In a case where both claims have been filed at the same time, a court will generally focus on the claim regarding the breach of contract. This will disregard the fraud claim as being duplicative, particularly when the claim restates that facts included in the breach of contract claim.
Breach of Contract Lawsuits in California
When a breach of contract lawsuit has been filed, the claim will generally imply that there has been some degree of misrepresentation that caused at least one party to not perform in the obligations set within the contract. A breach of contract, however, can become a fraud claim.
In California, a contract is a legal agreement made between at least two parties. The parties involved in the contract essentially promise to perform a specific duty. The reason behind having a contract be legally binding is to hold each party responsible in the event of a breach. A contract breach will occur when the agreement is not kept because one of the parties has failed to fulfill the obligations agreed upon.
A breach of contract can occur in the following methods:
When at least one of the parties involved in a contract have met their obligations, they are entitled to legal remedies for the breach of contract.
Contract Fraud Claims
Contract fraud claims occur when at least one party to the contract has presented information that is deceitful, incorrect, or meant to confuse those involved. For example, a contract fraud claim can occur in employment contracts, when employees claim to have certain skills and experience to perform a job duty, when in fact, they do not.
Another example can involve a party, who is lead to believe they are making a purchase for a certain item in a particular condition, but the contract has specified a different product under a different condition.
Consult the Support of a Qualified Law Firm
Claims involving a breach of contract or a fraud claim are very complex as they can sometimes overlap. These claims can be brought separately under specific circumstances. If you believe you have been misled when entering into a contract and are seeking to file a breach of contract or a claim for fraud, seek the legal support of a skilled business law attorney who will defend your interests.
The attorneys at Schwartzberg & Luther, APC understand that in order to file a strong claim for a breach of contract can require extensive legal knowledge and experience. If you have reason to believe you have been harmed as a result of a breach of contract, consult a skilled law firm today.
Class action lawsuits can occur when multiple individuals band together to sue a company. The case is brought up in the court when different individuals have suffered the same kind of losses at the hand of the company. The lawsuits usually seek damages amounting to millions of dollars, which can cause great financial difficulties particularly for a small business owner.
As a business owner, you should do everything in your power to minimize the risk of a class action lawsuit brought against your company. This is because the cost of the legal fees along with the monetary compensation paid to the plaintiffs could force your business to a halt. There are even websites dedicated to tracking class action lawsuits.
So, how can you avoid a class action lawsuit? Keep reading to find out some tips that can help business owners to minimize the chances of a class action lawsuit.
1. Think Twice Before You Say or Do Anything
Actually, this heading should be: 'think ten times before you say or do anything'. This is because whatever public announcement that you make or actions you perform could spark a class action lawsuit against your business.
Avoid making any statement that might be considered libelous or slanderous. Also, you should consider the legal implications of an action before making any decision. Consider consulting with an experienced business lawyer to know about legal ramifications before making a statement or taking an action.
2. Do Everything by the Book
Another advice to avoid the risk of a class action lawsuit is that you should do everything by the book. You must get acquainted with and follow the law by the letter. When facing a class action lawsuit, you will have a better chance of a favorable outcome if you had made sure that you did not violate any state or federal laws. Again, hiring a professional business lawyer is recommended as you can know about the legal nuances regarding different aspects of the business.
3. Clearly Define Performance Expectations
Another tip to avoid a class action lawsuit is to clearly define the performance expectations regarding job duties and roles. It's important to document the job duties and performance expectations. Employees must clearly know what they are expected to do, and how their performance will be judged.
In case you have terminated a group of employees based on performance issues, you need to provide evidence in the court about the cause of the termination. This will prove invaluable in ensuring a positive outcome relating to a wrongful termination case.
The above three tips can greatly help in minimizing the risk of a class action lawsuit. You should also consult with an experienced business lawyer to draft an arbitration clause. In this way, if an employee or a customer files a case against you in the court, you can request for the dispute to be decided through arbitration.
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