As a business owner in New York, you understand the importance of contract completion. You make it a point to go that extra mile for each and every one of your clients. But, what happens when one of your business contracts, e.g., a vendor, remains unfulfilled, causing both you and your clients to suffer as a result? When this happens, you might find yourself in the middle of a breach of contract situation.
In general, a breach of contract occurs when one party to a contract fails to uphold the terms of the agreement. For example, if you own a catering business and you have a contract for to receive certain foods and ingredients from a local supplier, you depend on those items arriving in full and on time for your next job. If the supplier fails to deliver the goods specified in the contract by either missing the delivery deadline or delivering the wrong items, then a breach of contract occurs. To find out more about breach of contract and possible options for remedies, read further.
Often when a breach of contract occurs, the proper solution hinges on whether the damages were material or immaterial. For example, if you lost thousands of dollars in profit because the other party to the contract failed to perform according to the terms, then you could be entitled to receive material damages. However, if you did not suffer a monetary loss or anything more than an inconvenience, the damages might be immaterial.
When an individual or business suffers from a breach of contract, there are usually several possibilities available. You can try to come to an agreement to fulfill the original terms of the contract, if possible. You might have to enter additional negotiations or perhaps use mediation to work out the new terms of the agreement. If the breaching party is not responsive or refuses to negotiate, you might have to file a lawsuit in court.
There are usually various remedies available when a breach of contract occurs. For example, you might sue for damages, including lost income, time and recovery of any payments you made to the vendor as part of the contract.
You could also insist on specific performance. This is usually an acceptable remedy when the party in breach provides a very unique service or product that is very difficult to find elsewhere. You may also opt for cancellation and restitution. This will essentially return you to the position you were in prior to the contract.
If you have suffered losses due to a breach of contract, you might be able file a claim in court if other resolution tactics fail. Part of running a successful business is not only completing your own duties in a contract but also pursuing legal action against those that fail to uphold their obligations.