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What can you do to remedy a breach of contract?

On Behalf of | Jun 29, 2022 | Business Law |

You do your best to make sure you always uphold your end of contracts, but there are some rare instances where something goes wrong and a breach is possible.

Most people are willing to work together to resolve breaches and maintain a good business relationship as long as the remedy is one that actually resolves the conflict and helps recover financial losses.

If you find that your business is in breach of a contract you signed or a company you work with has violated their contract accidentally, it may be a good time to look into possible remedies.

Minor breaches of contract may not require major responses

Minor breaches are frustrating, but they don’t necessarily require you to turn to a lawsuit. Immaterial breaches or partial breaches may be able to be resolved outside of court and, in some cases, without involving the law at all.

For example, if a delivery was made two days late but your business didn’t suffer any damages as a result, it may be a good idea to talk to the company about making sure all future orders are delivered on time. They might be willing to compensate you if you had minor losses from a lack of product, too.

Material breaches of contract are more serious

Material breaches of contract can leave you with real damages that hurt your business. If you breach a contract with another business, it may have hurt their bottom line, too.

Your contract may go over what to do in the case of a material breach, such as attending mediation to resolve a dispute. In the meantime, you and the other company could try to work out a solution.

For example, if the two-day delay of products left you $2,000 poorer, you could ask them to cover the damages. You might end the business relationship if this isn’t the first time there has been a breach, or you could take them to court if they’re not willing to compensate you for breaching the contract.

A breach of contract can be serious, but how you respond could help or hurt your future relationship with the other party. Consider carefully how you want to move forward before responding.