Businesses may need to file lawsuits for a broad range of reasons. Perhaps a vendor breached an agreement by delaying supply delivery or substituting substandard materials for a client’s usual order. Maybe a former business partner violated the terms of a non-compete agreement.
Unfair competition and even business defamation can also lead to legal action. Organizations pursuing lawsuits against professionals or other companies typically have to ask the courts for specific relief in their lawsuits. Choosing appropriate recourse for the issue can be as important as validating that there was an issue.
What are some of the options available to business leaders when they opt to address legitimate concerns in civil court?
Requesting damages
There are many kinds of misconduct that can result in financial consequences for a business. A former employee unfairly competing with a company might lead to a significant decline in organizational revenue. Delayed deliveries might result in a company idling its production lines and a total loss of revenue for multiple days. Provided that there is financial documentation of how the conduct of one party affected the business, it may be possible to ask for damages as a form of relief in a civil lawsuit.
Asking for contract rescission
Frequently, business contracts establish long-term working relationships between the two parties. When a breach of contract has damaged the trust between the plaintiff and the other party, continuing to work together may not be the best option. Contract rescission eliminates future obligations by effectively canceling the agreement. The courts can terminate contractual obligations in scenarios where the business relationship might otherwise persist.
Seeking contract enforcement
There are multiple ways for judges to enforce a contract. They can issue an order of specific performance and demand that the defendant complete their contractual obligations. An order of specific performance might require that a vendor deliver goods or that a service provider redo work that did not meet contractual standards. The courts can also enforce penalty clauses integrated into the initial agreement. Finally, judges have the authority to issue injunctions to prevent continued violations of the terms of a contract, defamation or unfair competition.
There are other solutions available as well, depending on the circumstances leading to a particular lawsuit. Discussing the grounds for business litigation with a skilled legal team can help plaintiffs determine what type of relief to request from the courts. Proper support can help business leaders resolve matters in the most beneficial manner possible.