How can businesses resolve breach of contract issues?

On Behalf of | Apr 28, 2022 | Business Law |

Contracts involve a promise to exchange services, goods or financial resources. When you agree to purchase supplies from another company or provide them with certain services, you expect that they will fulfill their obligations to you under the contract. 

Whether a client refuses to pay you after you perform the work or a supplier never delivered the goods that you paid for, a breach of contract can affect your company’s finances or operations if you don’t have the support or materials necessary to do business. 

How can you resolve a breach of contract? 

Notify the other party

Sending formal notice of a breach of contract is a good first step in the enforcement process. When you take the time to officially notify the other party, you make it much harder for them to claim they were unaware that they had breached the agreement. In some cases, notifying them directly of the issue will get them to resolve the matter. 

File a lawsuit if necessary

If the other party doesn’t respond to you or if they refuse to make good on their contractual obligations, then you may need to take them to civil court. It will likely be weeks if not months before you have a hearing, and the chances are good that the other party will be more receptive to negotiating a settlement when they faced the pressing reality of an upcoming court date. 

If they do not work with you to settle the matter outside of court, then a judge could help you by holding them accountable and enforcing the contract. Knowing the right steps to take when contract issues affect your business will help you more effectively resolve the matter.


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