Breach of contract lawsuit

What happens with a breach of contract?

Legal Contacts Protect You

There’s that old saying “Good fences make good neighbors.” We’d say the same thing is true for good contracts.

Well-crafted legal contracts are essential for both personal and business matters.  For one, they help you avoid miscommunication and misunderstandings by clarifying the terms of the agreement. But also, they provide you with legal footing in case of a breach of contract. There are many things that go into writing a solid legal contract, but let’s discuss what happens in the case you have a breach of contract.

Resolving Breach of Contract Disputes

There are several ways to resolve the breach of contract situation (assuming communications have shut down or become non-productive).

  1. File a lawsuit
  2. Agree to arbitration
  3. Agree to mediation

Mediation and arbitration are considered alternatives to filing a lawsuit and going to court, but typically agreeing to these options doesn’t forfeit your right to file a lawsuit later. In arbitration, you have one or more arbitrators, who act somewhat like judges, in that they weigh both sides and recommend a resolution. In mediation, the two parties (and their attorneys) work to find a workable compromise. Both options are usually less expensive than litigation.

If one party ends of filing a lawsuit and taking the other party to court, the court then makes a binding decision on how to resolve the breach of contract.

Resolutions to Breach of Contract Disputes

An individual or company which has breached a contract may be found liable for compensatory damages and other damages including:

  • Punitive damages
  • Nominal damages
  • Liquidated damages
  • Specific performance
  • Contract cancellation

Both parties will typically incur court costs, attorney fees, and lost time in the preparation for court.

Use a Contract Attorney

Yes, we litigate breach of contract disputes. But so often we think, “This entire fiasco could have been avoided by a good legal contract in the first place.” So our advice is, hire a contract attorney anytime you are creating or signing a contract – especially in high-risk situations. Many contract attorneys (like ourselves) offer flat monthly fees for business law clients to stabilize the legal budget.

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