When one party fails to fulfill their obligations under a legally binding agreement, the other party may have the right to sue for damages. In Oklahoma, breach of contract lawsuits are common in both personal and business disputes. This article outlines what you need to know about suing for damages in a breach of contract case—including the types of damages available and what you’ll need to prove to win.
What Is a Breach of Contract?
A breach of contract occurs when one party fails to perform as promised under the terms of the agreement. This could include substandard work, missing deadlines, or refusing to pay. To bring a successful breach of contract claim in Oklahoma, you must generally prove:
- A valid contract existed
- You fulfilled your obligations under the contract
- The other party failed to perform as agreed
- You suffered damages as a result
Oklahoma’s statute of limitations for breach of contract claims is 5 years for written contracts and 3 years for oral contracts. You must file your lawsuit within these timeframes or risk losing your legal right of suing for damages.
Types of Damages You Can Recover
Oklahoma courts recognize several types of monetary damages in breach of contract cases:
1. Compensatory Damages
These are the most common and aim to put you in the position you would have been in had the contract been properly performed. For example, if a contractor fails to finish a $10,000 job and you pay $12,000 to someone else to complete it, you may recover the $2,000 difference.
2. Consequential Damages
These are indirect damages that result from the breach, such as lost profits or other economic harm. To recover consequential damages, you must prove the breaching party knew (or should have known) about the special circumstances when the contract was formed.
3. Liquidated Damages
If your contract includes a clause that specifies a pre-agreed amount of damages in the event of a breach, the court may enforce it—as long as it’s a reasonable estimate and not considered a penalty.
4. Nominal Damages
When a breach occurred but you suffered no actual financial loss, the court may award a small amount to recognize the wrongdoing.
5. Punitive Damages
These are rare in contract cases but may be available if the breach involved fraud, malice, or willful misconduct.
Mitigating Damages
Oklahoma law requires you to mitigate your damages. This means you must take reasonable steps to reduce your losses. For example, if a vendor cancels on a job, you should attempt to find a replacement rather than letting the situation worsen.
Tahlequah Civil Litigation Attorneys
If someone fails to fulfill their end of a contract, Oklahoma law allows you to sue for damages. The key to success is understanding your legal rights, documenting your losses, and acting quickly. For a free and confidential consultation with one of the civil litigation attorneys at Tahlequah Lawyers, call 539-867-2321. Or follow this link to ask an online legal question.