Breach of Contract

Contracts are the backbone of trust and accountability in the financial industry. When these agreements are breached by brokers or advisors, the consequences can ripple through every aspect of an investor’s financial security. The securities lawyers at Malecki Law are trusted advocates for investor rights. We are dedicated to helping clients navigate these challenges and take decisive action to protect their interests.

A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of their relationship. In the securities industry, contracts typically detail the obligations and responsibilities of both the broker or advisor and the investor. These agreements can cover a variety of aspects, including the scope of services, fees, investment objectives, and the broker’s duty to act in the investor’s best interests.

If you work with a broker or advisor, you almost certainly have a contract with them. This contract may be formalized through account agreements, written advisory contracts, or even a series of written communications that establish terms. For example, when you open a brokerage account, you typically sign an agreement that outlines the broker’s obligations and your rights as a client.

It is important to carefully review these documents to understand your rights and the broker’s duties. If you are unsure whether you have a valid contract, consulting with a securities attorney can provide clarity.

A breach of contract occurs when one party fails to fulfill their obligations as outlined in the agreement. Signs that your broker or advisor may have breached your contract include:

• Failure to adhere to your stated investment objectives.
• Unauthorized or excessive trading in your account.
• Misrepresentation of fees, risks, or investment strategies.
• Failure to disclose conflicts of interest or material information.
• Neglecting to provide agreed-upon services, such as regular account updates.

Reviewing your account statements and correspondence can help identify potential breaches. If you suspect misconduct, seeking legal advice is critical to assessing your case.

Yes, you may be able to recover your investment funds if you can prove that the breach of contract caused your financial losses. Legal remedies for a breach of contract can include:

1. Compensatory Damages: Reimbursement for the losses directly resulting from the breach.
2. Rescission: Canceling the contract and restoring both parties to their original positions.
3. Specific Performance: Requiring the broker or advisor to fulfill their contractual obligations.

To pursue these remedies, it is essential to document the breach and its financial impact. An experienced securities attorney can guide you through this process and advocate on your behalf.

If you believe your broker or advisor breached your contract, take the following steps:

1. Gather Evidence: Collect account statements, contracts, emails, and other documentation that support your claim.
2. Consult an Attorney: Contact Malecki Law to discuss your case and explore your legal options. Our team has extensive experience handling breach of contract claims in the securities industry.
3. File a Complaint: If appropriate, file a complaint with FINRA or another regulatory body or in court. Your attorney can help ensure your claim is properly submitted in the correct forum and substantiated.
4. Seek Compensation: Work with your attorney to pursue compensation for your losses through arbitration or litigation.

When brokers or advisors fail to honor their contractual obligations, the consequences can be devastating. Malecki Law is committed to holding financial professionals accountable and helping investors recover their losses. If you suspect a breach of contract, call Malecki Law at (212) 943-1233 to schedule a consultation. Our dedicated team will work tirelessly to protect your rights and restore your financial security.