When you enter into a legal agreement with another party, the assumption is that both sides will adhere to the terms of the contract. You expect the other party to fulfill their obligations, and you plan to do the same. A business contract offers you protection and assurance when working with another party, and it’s important to know what to do next in case there is a breach of contract issue.
Contracts are some of the most important tools available to California businesses. These agreements can limit the risk associated with doing necessary business with another party, whether it’s a client, partnering business or supplier. These agreements outline what is expected of both parties, providing you with the ability to seek recourse in the event there is a problem or breach of the agreement.
What counts as a breach of contract?
Because every business contract is different, what qualifies as a breach of contract changes from case to case. Usually, it happens when one party does not meet the obligations as outlined in the agreement. A breach may include failure to provide results on time, failure to pay, refusal to follow agreed upon directions or not performing required duties. This can mean financial loss for your business, complications in your operations, delays in projects and more.
Breach of contract is much more than just an inconvenience. You have the right to seek legal recourse in order to recoup your losses or get what you need from the other party. Some possible remedies that may be available to you include:
- Cancellation of the contract and restitution of your financial losses
- Payment of damages to your company
- Compelled adherence to the terms of the agreement
The specific types of damages available to your business depend on the terms of the agreement, the losses you experienced and how the breach of contract impacted your company.
Fight for your interests
If your business is dealing with the fallout associated with a breach of contract, you do not have to deal with it alone. Working with a business law attorney can help you understand the specific options available to you regarding remedies, including damages and restitution. As soon as possible after a breach of contract, you may want to seek an evaluation of your case and counsel regarding the best way forward.