Proving Breach of Contract in Wisconsin: A Step-by-Step Guide

If you own a business in Wisconsin, you will have agreements with other individuals and/or businesses. At some point, the person you have made an agreement with will not live up to the terms of the agreement that was made by the parties. A party not doing what they agreed to do under a contract is generally referred to as a breach. In Wisconsin, a contract is typically breached in three primary ways:

1. Failing to perform a task specified in the contract.
2. Making it impossible for the other party to perform a task stipulated in the contract.
3. Communicating an intent to not perform a task in the contract.

While these criteria may seem straightforward, proving them can be complex.

Establishing the Claim

A breach of contract case will come down to whether a Plaintiff can prove the following three elements:

1. A contract between the plaintiff and the defendant that creates obligations flowing from the defendant to the plaintiff. Proof of this element is generally referred to as the “Existence of the Contract.”
2. The failure of the defendant to do what it undertook to do through a material or fundamental breach. This element involves whether there was a “Breach” of the Contract.
3. The plaintiff suffered damages as a result of the breach. Brew City Redev. Grp., LLC v. Ferchill Grp., 289 Wis. 2d 795, 714 N.W.2d 582 (2006).

Demonstrating the Existence of a Contract

A valid contract must be in place, which can be written or oral. The contract must include:

• Offer: A discussion and agreement to provide goods or services in return for something of value.
• Acceptance: An agreement regarding the terms of the contract.
• Consideration: All parties must have something to gain from the agreement.

Breach of a Contract’s Terms

A breach occurs if any terms of the contract are broken, resulting in a loss. The breach must either:

1. Reduce the value of the contract (material breach).
2. Alter the outcome of the agreement significantly (fundamental breach).

With that said, whether a contract has been breached will depend on the type of contract and all of the facts surrounding the performance of the contract by the parties. Whether a contract has been breached is a complicated legal issue.

Damages

The plaintiff must show they suffered damages due to the breach. This can include monetary losses, time, or other opportunities. Courts may award damages to return the plaintiff to their position before the agreement. In general, a party may seek incidental and consequential damages for breach of contract, which can include “all losses that are the natural and probable results of the breach” as well as reasonable expenses incident to the contract breach); Wis JI-Civil 3710 and 3720. In cases of intentional breach with intent to defraud, a Plaintiff can also seek punitive damages to prevent this type of breach in the future.

The business litigation attorneys at Halling & Cayo, S.C. have decades of experience helping people and/or businesses like you to enforce the agreements that have been made. If you have someone that you believe is in breach of a contract, please contact an experienced attorney today for a free consultation to discuss all of the options that may be available to you.