Steps to Take When Another Party Breaches Your Business Contract

Business contracts are the agreements that are the life blood of entrepreneurship and small business, and even major corporations today. When another party breaches a contract, it is important to understand your rights and responsibilities so that you can take the necessary steps to protect yourself and pursue legal action, if necessary.

Ensuring that you have properly drafted contracts to begin with is one of the most important things you can do to guard against risk and ensure that everyone is on the same page when you initiate a business relationship. When another party breaches a contract, it is important that you follow the below steps in order to minimize the chances for a dispute. Taking the right steps can make things easier for everyone involved in a contract dispute so that you are able to continue managing your business effectively.

Communicate with the Other Party

The first thing you need to do is have a conversation about the potential breach of contract. It is possible that the other person misunderstood their responsibilities within the contract and you should always reach out to them first before initiating legal action. Legal action should be seen as a last resort to be pursued only after you have exhausted all other possibilities and been unable to resolve the issue.

Collect Your Evidence

Any and all evidence that indicates that the person failed to perform their duties is important for moving forward with legal action. Whether you may ultimately settle outside of court or whteher the person may step forward to handle their own role in the contract, it is important that you understand the materials you have that back up the claims that you are making. You will need to prepare these materials to present them to your business attorney.

Schedule a Consultation with Your Business Lawyer

Your business lawyer, preferably the same person who drafted the contract to begin with, can help advise you about the next steps if you have reached out to the other party and have been unsuccessful in moving forward with results. This may cause you to file a lawsuit in order to compel the other person to hold up their end of the bargain to compensate you for damages associated with their breach of contract or to cancel the contract altogether.

These legal avenues are available to you and an experienced business lawyer can help.

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Written by Brett Trembly

Brett Trembly

In the South Florida legal community, Brett sits on the Board of the South Miami Kendall Bar Association, the Florida Bar 11th Circuit Grievance Committee, volunteers on the Florida Bar Young Lawyers Division Mentoring Program, the Dade-County Bar Associations Rainmakers Committee, and annually volunteers for Miami-Dade County’s Ethical Governance Day.