In the business world, there are times when working with another person or company seems like a match made in heaven with everyone involved benefitting in some way. In other cases, moving forward with a business relationship may seem beneficial at first, but it could then take a turn later on that leaves one or both parties hurting.
You and your business may have recently found yourselves on the hurting side of a business relationship after another party did not follow through with an agreed upon arrangement. Because you had the forethought to create a business contract to hold all parties accountable for their actions, you may have reason to move forward with a breach of contract lawsuit if the other party’s actions did not adhere to the terms of the agreement.
Where do you start?
Whether this is the first time your company has had to handle such a matter or it has happened before, the process for addressing a breach typically follows the same route. Some starting steps in this process include the following:
- Reviewing the terms of the contract to determine whether a breach has occurred and what the breach involves
- Sending a demand letter that identifies the issue and offers a reminder of the other party’s obligations and how that party has breached those obligations
- Including a possible resolution suggestion in the demand letter
- Considering dispute resolution methods that may help address the problem
- Moving forward with a lawsuit and courtroom litigation if the other party does not meet the terms of the demand letter
It is not always easy to find the best way to handle a breach of contract. The situation could quickly cause harm to a business if another party does not comply with the agreed-upon terms. If damages occur, acting swiftly may help your company minimize those damages.
What is your next move?
If the breaching party does not comply with the demand letter and alternative dispute resolution does not seem a likely path, litigation may help you and your company resolve the matter. It may be challenging and time-consuming, but in many cases, this course of action helps companies get the compensation they deserve after a breach of contract causes damages. Exploring your various options before making a decision could help in making an informed decision.