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

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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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