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How to Handle a Breach of Contract

How to Handle a Breach of Contract

In the world of business, the documents we sign are the foundation of our every interaction. From employment contracts to vendor agreements, we couldn’t move our economy ahead without these vital pieces of paper. Most business owners don’t anticipate the terms of those contracts being breached, but what happens when they are? Due to a variety of circumstances, the stipulations in a contract may be violated, intentionally or unintentionally. No matter the reason, however, a breach of a commercial contract can have consequences on your company’s image, revenue, and long-term success.

If you suspect a breach of contract with one of your clients, vendors, employees, or other parties, here are a few things that you should do:

  1. Get the facts

When there is a breach of contract, it may or may not be obvious. It may also fall into one of four categories: minor, fundamental, material, or anticipatory. Dig into the paperwork and try to identify exactly the offending action, when it occurred, and who is responsible for it. It’s also important that you can clearly demonstrate how this breach has negatively affected your business.

  1. Clear any misunderstandings

Sometimes, contracts are breached unintentionally, so it’s worth the time to investigate exactly why it happened. Consider reaching out to the offending party and asking for a private conference, so you can get to the bottom of it, without wasting time, money, or energy on a needless legal battle. This is especially important if your contract involves employees or other personnel.

  1. Gather evidence

Whether you choose to file a lawsuit or not, it’s vital that you gather as much evidence as possible, and keep these things in writing, or backed up on a computer. Make copies of the original contract, capture evidence of the breach, and track any losses to your company due to that breach.

  1. Contact a San Francisco business attorney

Since there are many complexities in business law, if you think a contract has been violated, it’s always a good idea to reach out to a qualified business lawyer. They will be able to give you better, more personalized guidance on what to do next, and will be able to represent you in a legal suit, if necessary.

Has your company been negatively impacted by a breach of contract? Reach out to us at Primum Law today for your free consultation.

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