Byron Carlson Petri & Kalb, LLC

3 ways for businesses to resolve breach of contract disputes

On Behalf of | Jul 15, 2021 | Business & Commercial Law

When everything works perfectly, business operations are smooth and seamless. Supply comes in, and products go out. Clients hire you for services and pay you promptly after you fulfill their needs. Unfortunately, human conflict and failure eventually affect many businesses.

The people you hire, the companies that provide you with materials or even a service provider could fail to fulfill their contractual obligations to your company. Contract issues can mean delays and disruptions that cost your company money.

When you have a written contract, you are in the position to hold the other party responsible for their failure to follow through with contractual obligations to your company. There are several different ways that you could resolve the contract issue.

Settling the issue outside of court

Many companies are able to resolve contract disputes without litigating them. In some cases, direct communication after a breach of contract can lead to a quick resolution to the issue.

When it doesn’t, filing a civil lawsuit can sometimes motivate the party in breach of the contract to negotiate and settle the matter. Many breach of contract disputes end without going through court because the parties find a way to solve the matter without a judge’s assistance.

Seeking the end of the contract and possibly damages

A breach of contract can destroy your trust in another business or an individual and make you wary about continuing to work with them. When there has been a serious breach of contract, you may be able to negate the contract, thereby ending your obligation to the other party.

If you incurred financial losses because of a significant contract breach or non-performance issues, you may be able to ask the courts to award you damages for any losses that you suffer.

Asking the judge to order specific performance

Sometimes, the only acceptable resolution to a breach of contract is to have the other party fulfill their contractual obligations. If you want them to deliver the goods or perform the services that you paid them for, you can ask for the judge to order specific performance in your case.

A court order instructing the other party to take certain steps is more enforceable than a contract requiring the same. There can be immediate consequences if the other party still refuses to make good on their obligations to you.

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