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What options do you have after a breach of a business contract?

On Behalf of | May 23, 2022 | Business Law

Your contract is a binding agreement between you and another party. You paid them or delivered goods, so you expect them to fulfill their end of the agreement.

Unfortunately, some people seemingly execute contracts with no intention of upholding them. Others let circumstances push them into violating contractual obligations and make no effort to communicate with or forewarn the other party.

When you find yourself dealing with a breach of contract situation in business, how should you resolve the matter?

Alert the other party about the issue

Sometimes, miscommunication or errors and record-keeping at a company are what cause a breach of contract. Other times, they may have key workers out sick or on vacation, leading to mistakes that were not intentional.

By giving the other party the benefit of the doubt and reaching out to them to advise them of the breach, you may be able to preserve your working relationship and address the breach at the same time.

File a civil lawsuit

Breach of contract claims are a common reason that companies end up in civil court. Although the majority of these cases settle before a judge ever hears the case, that doesn’t mean that going to court is useless.

You can push the other party to sit down with you and discuss the matter or agree to mediation by filing a lawsuit. Especially in circumstances where the other party has been unresponsive, serving them with paperwork for a lawsuit can push them into doing right by your business.

Know the solution that would be best for your company

Whether you intend to go to court or would prefer to resolve the matter outside of the courtroom, it is important to have realistic expectations for your breach of contract claim. You can ask for damages when there has been a verifiable financial loss. You can ask for specific performance so that the other party follows through with their contractual promises. You can even ask for the contract and refund any payments you have already made.

Knowing what you hope to achieve and the right steps that improve your chances of securing those goals will make it easier for you to quickly and effectively address a breach of contract.