Contract disputes can be bad for business. Fortunately, the legal process provides help when parties are engaged in a contract dispute or a breach of contract has been alleged by one of the parties. A variety of situations, including delays, financial problems and unexpected events, can lead to contract disputes. A
breach of contract can be incredibly disruptive and costly which is why parties involved in a contract dispute should understand the legal resources available to protect them.
A contract creates legal obligations the parties to the contract have towards one another. When one party has failed to perform their obligations under the contract, it is referred to as a breach of contract. A failure to perform can occur if a party to the contract fails to perform on time, does not perform according to the terms of the contract or fails to perform at all. A breach of contract can result in financial damages, delays and other problems in some instances.
It is important for parties to a contract to understand their potential remedies if a contract has been breached. In addition, contract breaches can fall into certain categories so it is also important for the parties to the contract to be familiar with what those are. In general, parties may seek remedies that include enforcement of the contract or financial damages for the breach. Damages for a breach of contract may include financial damages, specific performance of the contract, cancellation of the contract or restitution.
Contract breaches can cause significant financial harm to the non-breaching party. As a result, it is important for them to be aware of their rights under the contract, how to enforce those rights and protect their business interests if involved in a contract dispute.
Source: Smallbusiness.findlaw.com, “Breach of Contract and Lawsuits,” Accessed Nov. 7, 2017