What can businesses do if someone breaches an important contract?

In many ways, contracts are the foundation of modern business. They are written agreements that guide the way businesses interact with one another and create consequences for noncompliance. A written contract can give a business the confidence to move forward with the next phase of development because the work and supplies it needs will arrive as planned.

Unfortunately, not everyone lives up to their obligations as outlined in a contract. Some people simply overlook certain requirements. Other times, the violation of a contract is much more overt. Businesses dealing with the breach of an important contract have several options available to them for resolving the issue.

Attempt first to address the issue informally

Sometimes, a breach of contract is due to extenuating circumstances or a simple oversight. It may be possible to remind the other party of their obligation to your company. Sending an email which is both professional but polite could satisfactorily resolve the problem.

In addressing the breach, refer to the specific language of your contract and the obligations it outlines for the other party. Ask them about the status in a non-accusatory manner. In some cases, such a message will prompt the other party to follow through on their obligations. Documenting each issue that conflicts with the term of your contract as it happens can help strengthen your case.

Other times, those in breach of a contract may respond and provide you with insight about what is happening with their company. Informal communication can resolve the issue, but if it doesn't, you may need to take further action.

Have an attorney reach out to the company

Once you know that an informal resolution is unlikely, you will need to adjust your approach. Working with an attorney is a smart next step. An experienced business litigation attorney can draft a very sound letter outlining the issues that you allege comprise a breach-of-contract.

Receiving an email discussing contractual obligations is one thing, but an attorney's letter is very different. Having an attorney send a letter shows that you intend to take the necessary steps to get resolution, even if it takes legal action. That may be enough to resolve the issue.

You may have to go to court

If the other party still is not willing to remedy the issues, then you will need to ask the courts to step in. Your attorney can assist you in filing the necessary paperwork for a breach of contract lawsuit. They can also help you build a case to prove to the courts that the other party violated the contract as written.

Enforcing business contracts is often necessary. Whether you need a repayment of a deposit or other compensation because of issues that rise from the breach of contract, you can only connect with that compensation if you take steps to address the issue.