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How a contract dispute lawsuit holds companies responsible

A contract is just a piece of paper with some provisions and rules written on it. The document means nothing if the individuals, companies or parties involved in the contract don't hold their partners to task. This is where a contract dispute can arise: when one individual, company or party doesn't uphold their end of the bargain, the other side can file a lawsuit to finalize the contract dispute and figure out what remedies are available to fix the situation.

This may seem obvious and pedestrian, but it is important to realize this because some companies don't stand up for themselves or their rights. As such, their company is damaged.

Filing a lawsuit that disputes a contract is an important part of maintaining your business and protecting your interests when a business partner is unwilling or unable to comply with what they agreed to. Filing such a lawsuit also creates a reason for the non-compliant party to change their approach:

  • A lawsuit related to a contract dispute tarnishes the violating company's reputation and can affect their other business relationships going forward.
  • The lawsuit adds a new responsibility for a business to consider, meaning the violating company will have less time to deal with their business.
  • A lawsuit could mean financial compensation is on the line.

For all of these reasons, and more, a contract dispute lawsuit could spur a non-compliant company to work with you and either settle the claim or legally remedy it.

Source: FindLaw, "Top 10 Reasons to Avoid Breaching a Contract," Accessed Feb. 15, 2017

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Klein & Wilson

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