Breach of contract is one of the most common legal disputes businesses face. It can involve a company, vendor, employee, or customer who does not honor the terms of the agreement. Ideally, the two sides can sit down and find a solution that resolves the issue using arbitration, mediation or other dispute resolution process outlined in the original deal. However, it may be possible that the breach of contract claim will need to be decided by the courts.
Preparing for trial
While each case is unique, there are four common elements to building a breach of contract case. These are:
- A binding contract: Contracts are the underpinning of every vital business agreement. They outline such details as deadlines, fees, length, and scope. It typically needs fair and realistic terms if it is going to hold up in court.
- Meeting the conditions: This involves the party making an honest and reasonable attempt to fulfill the obligations outlined in the agreement. Meeting those terms makes it easier for the party to hold the other side accountable.
- Proving non-performance: This means that there was a material breach and showing that the breach impacted the plaintiff.
- Proving damages: Once the plaintiff establishes non-performance, they can show how it caused financial damages or loss of income. The plaintiff may also claim that the breach harmed their reputation because it caused them to be unable to meet their contractual commitments to others.
Protecting your business’s interests
Presenting these four points may convince the other side to honor the agreement’s conditions. A business law attorney who handles litigation can effectively present the case in court. It can take time, money and effort to file a lawsuit, but this may be the only way to protect your interests in a particular situation. It also establishes that the company is serious about enforcing its fair and binding contracts, and will take the necessary steps when its interests are threatened or at risk.