You form relationships with different people and entities when you operate a business. This includes suppliers, vendors and even business partners.
Each time you form a professional relationship, having a contract that outlines the terms and expectations of each party is recommended. When things are in writing, you have options to seek damages if the other party does not fulfill their obligations. In the business world, this is referred to as a breach of contract.
What are your legal options?
When a breach of contract occurs, it’s wise to go to the other party and see if they will make the situation right without you having to take further action. You may want them to simply fulfill their end of the deal, or you may need to ask for fair compensation for any losses you’ve faced as a result of the situation.
However, if the other party refuses to work with you or disagrees with your accusations, you can seek other legal remedies. That includes not only looking at the contract itself to determine whether there are specific provisions to address this problem, such as a mediation or arbitration clause.
Finally, you may have to take your dispute to court. When all other attempts to resolve a contract dispute have failed and negotiations have stalled, there may be few other options.
Protecting your rights and business
Understanding your rights to recover damages if a breach of contract occurs is beneficial for anyone who runs a business. The options listed here are your legal right and ensure you can receive damages for the breach that occurred.