In an ideal world, business agreements would be honored every time, and all parties would hold up their end of the bargain to benefit from this mutual relationship. In this ideal scenario, no disputes would happen.  Unfortunately, in the real world in Arizona, financial problems emerge, delays happen, and other unanticipated events can throw a wrench into an otherwise successful contract. When thinking about  breach of contract disputes and contract terms, what does this mean for litigation?

Contract Terms and Their Value in Your Company

The contract terms are the basis of the working relationship between two or more parties. The contract simply states the obligations that must be upheld by the individuals or companies who enter into these agreements. Under the law, a party’s failure to hold up his or her end of the contract is referred to as a breach.

What About When a Contract Is Not Upheld?

Based on the verbiage inside the contract, a breach can happen when one individual or entity does not perform at all, fails to perform in line with the contract terms or fails to perform on time. In these situations, the party who has been wronged may be eligible to file a case as a result of breach of contract. There are three primary ways to handle a breach of contract.

Ideally, you will be able to resolve these issues before they get escalated to the point of litigation, but some cases may need to be taken to court in order to be resolved successfully. The three options for resolving a contract dispute is to cancel the dispute and provide restitution to the party who has been wronged, to compel the breaching party to hold up his or her end of the contract, or for the wronged party to receive damages as a result of the breaching party’s inability to carry out the terms specified in the contract.

As you can imagine, the terms in the contract are critically important for the working relationship as well as for handling any potential disputes. You should always work with an Arizona business attorney to help you draft contracts or to handle any disputes related to their performance.  Having a solid contract to begin with can be especially helpful, but there are also situations where a dispute may happen, even if you have done your best to prevent conflict from happening. In this situation, having a reliable business attorney to rely on is a great benefit.

This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Breach of Contract Disputes and Contract Terms, or any other commercial litigation matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to,  or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.