Kennelly Business Law

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What to do when a breach of contract occurs

Business owners in North Dakota and elsewhere depend on contracts to make their companies run smoothly. Unfortunately, some find that, even with contracts in place, there are those who ultimately fail to uphold their end of any agreed-upon terms. What can one do to recover any losses that may result when a breach of contract occurs?

It does not matter who is on the other end of a contract breach -- client, employee, vendor or partner -- there are a few remedies available to the offended party. For starters, one may seek damages. This is monetary compensation that may be achieved through negotiation or litigation. Seeking damages alone will not dissolve the existing contract; it simply allows one to recoup any financial losses resulting from the breach.

If seeking damages alone is not what is wanted, one may seek to dissolve the contract and then seek restitution. Canceling a contract relieves everyone involved from contractual obligations. Restitution, if granted, is meant to make the non-breaching party whole again.

Dealing with a breach of contract can be messy and complicated. Thankfully, it is not something business owners in North Dakota have to handle on their own. An experienced business law attorney can help one decide the best way to address the matter so it can be dealt with quickly, quietly and with one's best interests in mind. For some, this may mean doing everything possible to keep the issue from going to court; for others, this may mean pursuing litigation. Either way, legal counsel will work diligently to help the client seek maximum compensation for his or her losses.

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