What to Do When a Contract is Breached
Businesses rely on contracts for many of their transactions. Although you can usually count on a contract to protect you against problems, there are times when this is not the case. Business owners need to know what to do when a contract is breached. Before deciding how to handle the situation you should first evaluate the breach and find out what options are available.
Determine the Reason for the Breach
The first step that you must take if a contract has been breached is to determine the reason why. The contract must be reviewed in depth to find out which area of it applies to this particular situation. In some cases, the parties may not be interpreting the contract in the same way. Other times, the breach is clearly the fault of one party or the other. A commercial law attorney can help sort out the details of the problem.
Negotiate With the Other Party
Negotiation is often a good option because it keeps the case from proceeding to court. It is advisable to have your attorney involved to provide guidance and lead the negotiation. If parties are not able to communicate with each other, their attorneys can get involved. Often, a resolution can be achieved that will satisfy the needs of both parties. If not, the case may proceed to court.
Protect Your Company against Contract Breaches
One of the most important things you can do to protect against a potential breach of contract is to ensure that the contract is properly written and executed. It is essential that the contract is clear and the intent is made known to both parties.
Make Contracts Clear and Concise
Contracts used in your business should be clear and concise. They need to address all of your important concerns and areas that could cause difficulties. For example, a contract should include a payment schedule, a performance statement, and a method of resolution. A well-written contract will help keep your business from suffering contract problems and can save you time and money. You may be able to have a standard contract drafted by your attorney for use in most of your transactions.
All businesses can be harmed by a breach of contract. Discuss your contract decisions with the experienced legal team at Udall Shumway. Schedule a consultation today.
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 When a Contract is Breached, or any other litigation matter, please feel free to contact Stockton D. Banfield at 480.461.5356, log on to udallshumway.com, 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.