Amazon Seller: Can you sue for breach of contract?

You make a verbal agreement with someone, only for them to go back on their word.

If this has happened to you, don’t worry, you have options! In this video I talk about the basics of breach of contract and what you can do if someone breaks their promise to you.

If you’re considering taking legal action, be sure to consult with an attorney first!

What is a breach of contract?

Contract Breach

A breach of contract occurs when one party fails to perform a promise previously bargained for or interferes with another party’s performance.

A breach of contract claim must state the existence of a contract, the specifications of the parties’ performance under the contract, the defendants’ actions that breached the contract, and the harm that resulted from the breach to state a cause of action.

The contract must be valid and fair for both parties, it cannot be one-sided. Both parties have to freely enter into the agreement, and the terms have to be in the best interest of the public. If all parties agree to the contract without any coercion involved and the terms are clear and understandable, each party is bound by the terms of the agreement.

How are these cases decided?

In the Amazon cases, the court usually grants summary judgment when there are no facts provided to show Amazon’s conduct was unfair, deceptive, or the conduct negatively affected public interest. The only way for a claim to survive is by stating relevant facts that provide proof of breach. If there is no genuine issue of material fact, summary judgment will be granted in favor of the party that brings the motion.

It is typically harder to win litigation that concerns breaching a verbal contract. You should pursue litigation only if you expect to make or save at least 3-5 times the amount you would need to invest.