We have three clients that signed contracts and have pulled out , we need to sue for damages?

UPDATED: Jan 7, 2018

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We have three clients that signed contracts and have pulled out , we need to sue for damages?

How can sue these people for damages and breach of contract?

Asked on January 7, 2018 under Business Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If you want to recover any compensation, yes--you will have to sue them for breach of contract. That is the only way to compel them to pay something. You simply file a lawsuit against them (you can name multiple defendants in one case, if they are all on the same contract; if each has its own contract, you will have to file separate cases) alleging breach of contract; in the suit, you quote or cite the contract terms they violated and describe how they violated those terms. If the case or cases are under the small claims limit ($3,000), file in small claims in NJ; if between $3,000 and $15,000, file in what's called "Special Civil"; if over $15k, file in law division. (There are also some geographic limitations to comply with: for example, small claims only has jurisdiction over defendants in the same county in which the court reside; these limitations sometimes force you to go to a "larger" court--one with a higher limit and more complicated procedures--than you would prefer.) If your company is an LLC or corporation, you *must* have an attorney; if a sole proprietorship, you may represent yourself ("pro se"), though a lawyer is still recommended.

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