What to Do if Someone Breaches a Contract
If the party with whom you have signed a contract breaches the agreement, first try to repair the breach in accordance with the terms of the contract before resorting to a breach of contract lawsuit.
Contracts are an essential part of doing business. Since incorporating your business, you have probably signed contracts with business partners, vendors, landlords, clients, and employees. Most of the time, contracts are effective at preventing disputes because, by drafting, reviewing, and discussing the contract, the parties are on the same page about each party’s rights and obligations in connection with the agreement. Where business contracts are most important, though, is when one party does not do what they promised. If you have a written contract, you can prove in court that an agreement existed; if not, it is one person’s word against the others about what each person promised. A Norcross business litigation attorney can help you resolve disputes related to breach of contract.
Business Disputes Over Breach of Contract
A breach of contract occurs when a party to a contract stops doing what they promised to do by signing the contract. These are some examples of actions that might constitute a breach of contract:
- A business does not pay an employee for time worked or a vendor for supplies provided.
- A vendor does not provide the supplies they promised to provide.
- An employee quits their job before the end of their contract period.
- An employee stops doing the work that they were assigned in accordance with the contract.
Some business contracts specify procedures for repairing breaches. Even if your contract does not contain these provisions, you should notify the other party as soon as possible that they are in breach of contract and indicate that you will take legal action if they do not repair the breach by a certain date. Sometimes this is enough to help you reach a temporary solution. Even if the other party is unable to fulfill all their obligations by the date you specified, they might be able to negotiate a new agreement with you, which may result in an amendment to the original contract. For example, if they cannot make up for all their late payments in a lump sum, they may be able to pay you in installments.
If that does not work, you can file a breach of contract lawsuit. To win your case, you must prove that you signed a contract with the other party, you fulfilled your obligations while they did not, and as a result, you suffered financial losses.
Do Not Omit From a Business Contract Anything That You Would Omit From a Prenup
With business contracts, an ounce of prevention is worth a pound of cure. Consider that business contracts, much like prenuptial agreements, provide a roadmap for what to do in the event of a messy breakup. Be as specific as possible about each party’s obligations to detect breaches of contract, notify the breaching party, and repair the breach. The contract should also state which court system (preferably the courts of Georgia), or alternative dispute resolution company, has jurisdiction to rule on disputes arising from the contract, including breach of contract litigation.
Contact Zimmerman & Associates About Breach of Contract Disputes
An Atlanta business litigation lawyer can help you if someone with whom you have signed a contractual agreement has breached the contract. Contact Zimmerman & Associates in Norcross, Georgia to set up a consultation.