Some people say that contracts are the lifeblood of modern business. These formal, written agreements help solidify obligations one party makes with another. Businesses use contracts to protect themselves from liability, secure skilled work of professionals and obtain supplies.
There can be financial consequences for your business when another party violates their contract with your company. If you can’t resolve the contract issues on your own with the other party, then you may have no choice but to go to court to litigate the matter. What are the possible solutions that a breach of contract lawsuit could offer your company?
Litigation may lead to a nullification of the contract
Contracts create obligations for all signing parties, and the default of one party does not necessarily absolve the other of their responsibilities. You may simply want the courts to end the contract so that you no longer have any obligation to the other party to do any future business with them.
Breach of contract lawsuits may give way to specific performance
Maybe you already paid a company to resurface your floors, but they never did the work. Perhaps you ordered certain materials that the business never delivered.
You could ask the judge to order specific performance in cases where you would prefer to complete the contract terms. The other party will have not just a contractual obligation to you but also a court order compelling them to comply once a judge enters their ruling.
Contract litigation can result in awards of financial damages
The violation of a contract can have significant financial repercussions for a business. The courts may award you damages for your losses in addition to whatever other actions they take on your behalf if you can show verifiable financial losses directly stemming from the breach.
Considering all of the ways to resolve a breach of contract claim can help you secure the best resolution to your issue.