Byron Carlson Petri & Kalb, LLC | attorneys at law

Can the courts uphold a contract that a party has violated?

On Behalf of | Feb 15, 2022 | Business & Commercial Law

Executing contracts with other businesses helps you keep the flow of businesses operations and the expenses your company incurs reasonable. You can expect the reliable delivery of services and goods once you and another business have a contract.

Unfortunately, plenty of individuals and companies fail to fulfill their contractual obligations, leaving the other party to the contract in a difficult situation. Maybe you already paid for something you didn’t receive or lost money because of a delay in supply delivery.

Taking the other party to court could damage your relationship and make it harder for you to continue doing business with them in the future. You may feel like you have no power, especially if you need them to make good on their contractual promises to your company. Can you count on the courts to enforce the contract that you signed?

What options does a court have?

A civil judge hearing a breach of contract case has numerous tools at their disposal to resolve the dispute. For example, they could award one party damages if the breach has caused provable financial losses.

They can also order specific performance if one party still needs the other to follow through on the agreement. Specific performance involves a judge ordering one party to perform certain actions, such as the exact tasks or product delivery originally contained in the contract. When a judge orders specific performance, the other party continuing to breach the contract will carry more significant consequences because of the court order.

Identifying the optimal solution to your upcoming business contract litigation can help you plan for court and negotiate before your hearing.