Meet Our Contract and Commission Litigation Attorneys

If you believe a contract has been breached, follow these steps:

Review the Contract

Understand the terms and conditions, including dispute resolution clauses and specified remedies.

Document the Breach

Gather evidence such as emails, invoices, and communications proving the other party failed to meet obligations.

Explore Negotiation

Attempt to resolve the issue outside of court through direct discussions.

Contact Morgan & Morgan

An attorney can advise on the best legal course of action and potential remedies.

Contract and commission litigation involves legal disputes over the terms of a contract, particularly when compensation is based on commissions or other compensation that is owed. These cases often arise when there is a disagreement over how much a worker is owed, when they should be paid, or whether they are entitled to commissions after leaving a company.

Common disputes include:

• Failure to pay commissions after a deal closes
• Disagreements over commission percentages
• Employers changing compensation structures without notice
• Contracts being breached or terminated without cause
• Disputes over bonuses or other performance-based pay
  
   

In short, these lawsuits revolve around broken promises and unpaid earnings.

Let’s dig deeper into some of the legal concepts that often come up in these cases:

Breach of Contract

If you have a written agreement that outlines your compensation terms and the other side doesn’t honor it, that’s a breach of contract. Even if you only had a verbal agreement or one based on email exchanges, you may still have a case under certain state laws.

Procuring Cause

If you are a broker or agent who procured a transaction, the party that benefited from that transaction may owe you a commission regardless of whether a formal contract was ever signed. 

Unpaid Wages

Commissions and other money owed are sometimes legally classified as “wages.” That means employers who fail to pay them on time (or at all) may be in violation of federal and state wage laws.

Implied Contracts

Even if you didn’t sign a formal agreement, if a business consistently paid you commissions under a certain structure, and you relied on that structure to do your job, you might have what’s known as an implied contract. Courts can enforce these agreements just like written ones.

Good Faith and Fair Dealing

All contracts—written or implied—contain an element of good faith. If your employer tries to manipulate the timing of a deal or intentionally undermine your ability to earn a commission, they may be violating this legal principle.

While contract and commission issues can affect workers in nearly every industry, they’re especially common in:

Real Estate

Real estate agents and brokers often work on a commission-only basis. After helping clients buy, sell, or lease property, they may have to wait weeks or even months to receive their commission. Disputes can arise when:

• A seller or landlord fails to pay an agent their commission 
• The parties to a transaction (buyer and seller) cut an agent out of a deal or exclude them from the communications
• Commissions are split unfairly or calculated incorrectly

At Morgan & Morgan, we represent real estate professionals who’ve been denied rightful compensation by their brokers, clients, or employers.

Recruiting and Staffing

Recruiters, especially those in third-party staffing firms, frequently earn commission based on successful placements. They may face contract issues such as:

• Denied payment for placing a candidate
• Reduced or clawed-back commissions due to company policy changes
• Disputes over when a placement qualifies for commission (i.e., length of employment)
   

If you’re a recruiter or staffing professional who’s been shorted on commissions, we may be able to help you recover what you’ve earned.

Sales

Salespeople are the lifeblood of many businesses, often incentivized with commission-based compensation. But they’re also some of the most frequent victims of contract disputes. Common issues include:

• Companies withholding commissions on “technicalities”
• Retroactive changes to commission structures
• Ambiguous contracts that lead to pay disputes
• Lack of payment for renewals or upsells
   

Our firm has helped sales professionals across industries (tech, pharma, advertising, and more) hold employers accountable when they’ve been cheated out of commissions.

Some contract disputes are resolved through alternative dispute resolution (ADR) methods.

Mediation

A neutral third party facilitates discussions between disputing parties to reach a voluntary settlement. The benefits of mediation are that it can be cost-effective, confidential, and preserve business relationships.

Arbitration

A third-party arbitrator hears arguments and renders a binding decision. Arbitration is a private adjudication that can be required if your contract specifies that forum.

The statute of limitations varies by state but typically ranges from 3 to 6 years. An experienced attorney at Morgan & Morgan can advise you on your state’s specific statutes for your claim. It is important to contact us as soon as possible to avoid missing these deadlines. Your attorney can then help to ensure that you file correctly and on time.

Although business people may do their best to avoid lawsuits, contract disputes can still arise. 

Every contract is different and each contains specific provisions that must be closely examined when there is an alleged breach. As a result, it is important to discuss your breach of contract dispute with an experienced contract attorney to protect your legal rights.

Here are some of the common contract types, as well as the legal challenges they can create.

Commission Contracts

In fields such as real estate, recruiting, boat or yacht sales, and others, often a written contract is entered into by the seller and the sales agent. These contracts can specify if and when a commission is owed. Even if there is no written contract, however, a commission might still be owed. 

Services Contracts

In services contracts, one party contracts another to provide a service within a stated period of time. Typically, services contracts specify the responsibilities of the service provider as well as the payment schedule.

Delays, quality issues, and nonpayment are common issues that can lead to disputes. As a plaintiff, you will often have to navigate complex legal and factual defenses to recover damages for your financial losses.

Buy-Sell Contracts

Buy-sell agreements determine how a business and its resources are transferred when a new owner acquires a business. Because many of these situations involve parties selling businesses that they built or operated for many years, buy-sell contract disputes can be especially sensitive.

Buy-sell contracts also become the focus of lawsuits when a business has multiple owners. There may be disputes, for example, over how proceeds of a sale will be allocated, who controls a business, or other related issues.

Employment Contracts

Formal employment contracts help employers and employees understand their responsibilities to each other. They also set expectations for compensation, services, conduct, and termination policies.

Many cases involve a plaintiff who was terminated early, terminated for improper reasons, or is otherwise owed money under their employment contract. As is the case with other types of contract disputes, the main issue is that a plaintiff must demonstrate losses suffered as a result of a contract breach in order to recover damages.

At Morgan & Morgan, our team of experienced civil rights attorneys has successfully represented countless clients in similar situations, securing millions in compensation. As the largest personal injury law firm in the country with over 1,000 lawyers nationwide, we have the resources, knowledge, and dedication to fight for your rights. 

We work on a contingency fee basis, meaning you won’t have to pay unless we win your case. Morgan & Morgan believes justice should be accessible to all, so our motto is the Fee Is Free™—you only pay if we win.

We take pride in standing up for individuals whose rightfully earned commissions have been denied due to a breach of contract. You shouldn't have to shoulder the financial burden caused by someone else's failure to honor their agreements. Contact Morgan & Morgan today for a free case evaluation and learn more about your legal options.

No. Consultations at Morgan & Morgan are completely free. We believe everyone deserves access to legal advice, regardless of their financial situation.

Hiring one of our breach of contract lawyers is easy, and you can get started in minutes with a free case evaluation on our site or by phone.

When you hire Morgan & Morgan, you don’t just hire a lawyer, you hire the largest personal injury law firm in the country with an army of over 1,000 lawyers and offices in all 50 states and Washington, D.C.

Your case will be handled by a dedicated team of professionals, including lawyers, paralegals, and support staff. You will be assigned a care team that includes a primary attorney who will oversee your case and ensure you receive personalized attention throughout the process.

After your initial consultation, your care team will schedule regular meetings to discuss your case, provide updates, and prepare you for any upcoming proceedings. We are committed to maintaining open lines of communication and keeping you informed every step of the way.

These meetings can be handled in person, virtually, and by phone, depending on your case’s requirements and your ability to do so.

Morgan & Morgan’s lawyers work on a contingency fee basis, meaning that there are no upfront fees or expenses until your case comes to a successful conclusion. That’s right—the Fee Is Free™, and you only pay if we win.

Our fee is a percentage of the settlement or verdict amount, ensuring we are motivated to achieve the best possible outcome for you.

To prove that the other party breached your contract, you need to establish the following key elements:

1. Existence of a Valid Contract

Even if the contract was not in writing, you must show that a legally binding agreement existed. Evidence could include:

• Emails, text messages, or other written communications
• Witness testimony confirming the agreement
• Proof of payments, invoices, or exchanged goods/services
• Past dealings or industry standards that indicate an agreement

2. Your Performance of Contractual Obligations

You must demonstrate that you upheld your end of the agreement or were ready and willing to do so. Evidence could include:

• Receipts or records of services performed
• Communications showing your attempts to fulfill the contract
• Proof of payments made or deliveries completed

3. The Other Party’s Breach

You need to prove that the other party failed to perform their obligations under the contract. Evidence could include:

• Missed payments or unfulfilled services
• Communications acknowledging failure to comply
• Witness testimony or business records proving nonperformance

4. Damages Resulting From the Breach

To recover compensation, you must show that the breach caused financial or other measurable harm. Evidence could include:

• Loss of commissions, bonuses, or other income 
• Additional expenses incurred
• Contracts with third parties that fell through due to the breach

A breach of contract occurs when one party fails to fulfill their contractual obligations. The severity and type of breach determine the legal remedies available. Here are the primary types:

Material Breach

A material breach occurs when one party’s failure to perform their duties is so significant that it defeats the purpose of the contract.

For example, if a landlord hires a real estate broker to list a property, a lease is procured, and the landlord fails to pay the commission, the breach would be material. 

Anticipatory Breach

This occurs when one party indicates, through words or actions, that they will not fulfill their contractual duties before the performance is due.

For example, if an employer accepts the placement of a candidate and tells the recruiter that they are not going to pay any commission, the non-breaching party can seek damages immediately without waiting for the deadline for payment.

When facing a breach of contract lawsuit, the breaching party may assert one of the following defenses:

Impossibility of Performance

If fulfilling the contract becomes impossible due to unforeseen circumstances, the party may be excused, such as if a venue booked for an event burns down before the scheduled date.

Mutual Mistake

If both parties were mistaken about a fundamental fact when entering the contract, it may be voided. For instance, a business purchases land for development, only to later discover it is protected wetlands.

Fraud

If one party was induced into the contract through deception, they may be released from their obligations. For example, a seller misrepresents financial records to convince a buyer to acquire a failing business.

Statute of Limitations

Laws set time limits for filing breach of contract claims, varying by jurisdiction.

Courts assess damages based on various factors:

• Compensatory Damages
  • Intended to restore the non-breaching party to the position they would have been in had the breach not occurred.
• Consequential Damages
  • Covers indirect losses resulting from the breach that were foreseeable at the time of contract formation.
• Liquidated Damages
  • Predetermined damages specified within the contract.

Yes, if you can prove the lost profits were foreseeable and directly caused by the breach. An experienced attorney can assist you with gathering the required evidence for this proof.

If a contract is breached but does not include a clause that spells out the remedy, don’t worry—you still have legal options. Courts don’t require a contract to say exactly what happens if one party breaks it. In fact, in many agreements, especially in real estate, recruiting, and sales, contracts are silent about remedies.

Here’s what typically happens:

The Court Will Apply Default Legal Remedies

Even if a contract doesn’t say what the remedy is, the law steps in to provide one. These are called default remedies under contract law. The most common are:

Compensatory Damages

This is the most typical remedy. It means the non-breaching party gets paid what they would have received if the contract had been fulfilled. 

For example, if you were promised a 10% commission on a $500,000 deal but didn’t get it, you could sue for $50,000 in compensatory damages.

 

Restitution

This remedy puts you back in the position you were in before the contract. If you did work and the other side unjustly benefited (but didn’t pay you), a court could order restitution to avoid unfair enrichment.

Specific Performance

This is less common, but a court could order the other party to perform their part of the contract.  

Other Legal Doctrines May Help

Even without an explicit remedy, your claim might also fall under:

• Breach of the implied covenant of good faith and fair dealing
• State wage laws (which often impose strict penalties for unpaid commissions)
• Quantum meruit (Latin for “as much as is deserved”), which lets you recover payment for the value of the work you performed, even without a solid contract
  
   

Why This Matters for Real Estate, Recruiting, and Sales Professionals

People in these industries often work under commission agreements that:

• Are partly verbal or loosely defined
• Don’t specify what happens if something goes wrong
• Rely on custom or practice instead of detailed clauses

That doesn’t mean you’re unprotected. Courts can and do enforce agreements based on actions, expectations, and the basic principle that you should get paid for work you did.

Yes, you may still be able to sue for breach of contract even if the agreement was not in writing. In many cases, oral contracts are legally enforceable, as long as they meet the basic elements of a contract: offer, acceptance, consideration (something of value exchanged), and mutual intent to be bound.

However, there are exceptions. Some contracts must be in writing under the Statute of Frauds, which varies by state but typically includes agreements related to:

• Contracts to buy or sell real estate
• Agreements that cannot be performed within one year
• Promises to pay another person's debt

If your oral contract does not fall under these categories, you may be able to enforce it through evidence such as emails, text messages, witness testimony, or partial performance of the agreement.