Call us now:
Contract disputes in Indiana arise when one party to a written or oral agreement fails to perform their obligations — delivering goods or services, making payment, meeting deadlines, or complying with specific terms. Indiana courts evaluate contract disputes under state common law and the Uniform Commercial Code (IC § 26-1, for sale of goods). The statute of limitations for breach of a written contract is six years (IC § 34-11-2-11) and two years for oral contracts (IC § 34-11-2-1). Remedies include compensatory damages, specific performance, and in some cases attorney’s fees if the contract provides for them.
Elements of a Breach of Contract Claim
To prevail in an Indiana breach of contract action, you must prove four elements: a valid contract existed between the parties, the defendant breached the contract, you suffered damages as a result of the breach, and you performed your own obligations under the contract (or were excused from performance). Each element must be proven by a preponderance of the evidence. The most commonly contested elements are whether a breach actually occurred and the amount of damages.
Common Contract Disputes for Indiana Businesses
Non-Payment Disputes
The most frequent contract dispute: you delivered goods or services according to the contract terms, and the other party didn’t pay. These cases are typically straightforward if you have a written contract with clear payment terms, delivery confirmation, and documentation of the work performed. Without a written contract, you’re relying on evidence of an implied or oral agreement, which is harder to prove.
Scope of Work Disputes
Disagreements about what was promised versus what was delivered. These disputes often arise from vague contract language — “reasonable efforts,” “industry standard,” or undefined deliverables. Prevention requires contracts with specific, measurable deliverables, acceptance criteria, and change order procedures.
Non-Compete and Non-Solicitation Violations
When a former employee or business partner violates a covenant not to compete or a non-solicitation agreement, the aggrieved party may seek both injunctive relief (a court order stopping the violation) and damages. Indiana enforces non-competes that are reasonable in scope, duration, and geographic area, and courts can modify (blue-pencil) overly broad restrictions rather than voiding them entirely.
Remedies for Contract Breach
Indiana law provides several remedies for breach of contract. Compensatory damages put you in the position you would have been in had the contract been performed — lost profits, cost of replacement performance, and incidental costs. Specific performance (a court order requiring the breaching party to perform) is available when money damages are inadequate, such as in unique real estate transactions. Liquidated damages clauses in the contract can set damages in advance if they represent a reasonable estimate of anticipated harm.
Frequently Asked Questions
Can I sue for breach of an oral contract in Indiana?
Yes, but the statute of limitations is only two years (compared to six years for written contracts), and proving the terms of an oral agreement is significantly more difficult. Indiana’s Statute of Frauds (IC § 32-21-1) requires certain contracts to be in writing — including real estate transactions, contracts that cannot be performed within one year, and agreements to pay another’s debt.
What if my contract doesn’t have an attorney’s fees clause?
Without an attorney’s fees provision, you’ll pay your own legal costs even if you win. This is the American Rule, and it applies to most Indiana contract disputes. Adding a prevailing-party attorney’s fees clause to your contracts before disputes arise fundamentally changes the economics of enforcement.
How much can I recover in a contract dispute?
You can recover the amount needed to put you in the position you would have been in had the contract been performed — including lost profits, cost of cover (finding a replacement), and incidental damages. You cannot recover speculative or punitive damages in a standard breach of contract action. Indiana requires the non-breaching party to mitigate damages — meaning you must take reasonable steps to minimize your losses.