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Legal remedies available after a breach of contract

On Behalf of | Mar 26, 2018 | Contract Disputes

Running a business means operating as a dependable part of a complicated ecosystem with many other parties, such as suppliers, service providers, enforcement agencies, customers, and employees or subcontractors.

In many cases, each of these relationships relies on contracts to establish the expectations each party has for the other, and the remedies that one party may seek if another party does not uphold the terms of the agreement. When one party does breach the terms of a contract, it is necessary to examine the nature of the breach and determine an appropriate response that considers both the terms of the contract and the feasibility of enforcing the contract’s terms.

If your business faces a breach of contract dispute, this may prove a delicate balance to maintain. You may benefit from the guidance of an experienced business law attorney who can scrutinize the specifics of your dispute and determine a strong strategy to resolve the conflict fairly and equitably.

Which remedies are a good fit for your dispute?

Depending on the nature of your business’s dispute, not all remedies may address the matter fairly. In some cases, a dispute may arise based not on which party has committed a breach, but what remedy is appropriate to address the breach. Generally speaking, parties may resolve breaches using:

  • Monetary compensation for damages
  • Cancellation of obligations to the breaching party
  • Restitution of the harmed party to its pre-breach state
  • Court-ordered performance by the breaching party

Because the business ecosystem relies not only on money changing hands but on parties upholding their responsibilities, simply writing a check does not always resolve a matter fairly.

If your business suffered a breach of contract that impacted your ability to do your work, for instance, then the other party should address this lost capacity and return you to your pre-breach state using restitution. Likewise, a breach of contract may best resolve by simply nullifying the obligation of the harmed party.

In some matters, a court may order one party to perform a specific service as outlined in the contract, or may order one party to resolve the matter through some action not outlined in the contract, but relevant to the breach.

Don’t wait to begin building a strong breach claim

The longer you wait to deal with a breach of contract, the fewer options you have and the more difficult it is to enforce the contract or seek resolution. These matters generally have fairly small windows of time in which to address them, so it is important to act sooner than later.

At the same time, it is wise to scrutinize all sides of the issue though the eyes of the law to ensure that you understand the legal tools available while you protect your interests and priorities.