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How To Deal With Breach Of Contract?

How To Deal With Breach Of Contract?

Business is great, life is good, and then… you realize someone hasn’t fulfilled their end of a contract. You wonder if there has been a breach of contract.

You hope that it wasn’t malicious intent, but you saw the perpetrator read the fine print. And they told you they understood everything before signing. 

As a business owner, contracts are in place to prevent breach of contract issues. 

So it can feel frustrating or even violating when someone you trust enough to know the inner workings of your business betrays that trust. But how do you move forward when dealing with breach of contract?

Understanding Breach Of Contract & The Steps To Prevent Or Recover

The first step in taking action to recover from a breach of contract is to acknowledge it has happened.

The Statute Of Frauds Outlines Contract Requirements

Breach of contract isn’t anything new. In fact, the Statute of Frauds exists to protect contracts. But for this statute to be on your side, you must have a written agreement. This, along with the burden of proof that a breach occurred, may be all you need to prove the betrayal in court. 

It’s Possible To Prove Breach Of An Oral Contract

While oral contracts don’t fall under the protection of the Statute of Frauds, that doesn’t mean they’re completely dismissable.

These days, we talk things out in emails and texts fairly often. And that’s good because that means there is proof of the conversation. 

So even if you were acting under an oral contract, your protections might lie in your texts, emails, or any type of evidence that proves the contract exists. 

However, it’s important to realize that breaches of oral contracts are typically harder to prove. To protect your business, you should have EVERYTHING drawn out in a legally binding document. If you choose to move forward with nothing but an oral contract, you better be OK working for free.

Prevent A Breach & Litigation With A Well-Drafted Contract

When someone comes to me asking, “What’s the best way to prevent a breach of contract?” The answer is simply to have a strong and unambiguous contract in place.

This is where business attorneys make your life easier and keep your business safe. At Carson Law, our clients know that we are here for them and that their success is important to us. That is why we take the time to carefully review every incoming and outgoing contract. 

From operating agreements to NDAs and buy-sell agreements, these contracts are there so that you can run your business properly and successfully. 

With a good contract, procedures are already in place to deal with a breach of contract. Without these procedures, you could be facing expensive litigation every time an issue arises. 

Moreover, a good business attorney will ensure everyone understands the contracts they sign. If everyone involved understands and meets their requirements (as stated in the contract), you’re far less likely to ever have a breach of contract.

As a business owner, are you drowning in contracts and signing things you don’t fully understand? Then it’s time to contact Carson Law to get the legal business representation you and your business deserve. 

Attempting To Rectify A Breach On Your Own Can Lead To Criminal Charges

You may have seen the viral video in the news of the contractor who took non-payment into his own hands. A homeowner hired a contractor to remodel his bathroom and withheld payment. 

Rather than following procedure and taking the homeowner to court, the contractor decided to “repossess” the remodel – with a sledge hammer. While there are differing opinions on who was at fault, the contractor’s method of rectifying the issue is far from advisable. (Seriously, don’t do this.)

This is how a civil issue can become a criminal offense. The contractor trespassed into the home and caused property damage. 

If you were to sell someone a car and they default on payment, you can’t just steal it back – that could be considered theft. 

In both of the above situations, a good contract would stipulate the course of action if non-payment becomes an issue. If the customer defaults on the contract by not paying, there are steps to take to avoid turning this into a criminal case.

Follow Procedure If You Suspect Breach Of Contract

At Carson Law, our contracts include a procedure for potential or actual breaches of contract. First of all, we submit notice to the party at fault. During this period of notice (usually 10-30 days), the damaging party is called to cure (fix) their wrongdoing. 

Things happen. People get confused. Mistakes are made. It’s in everyone’s best interest to resolve breach of contract amicably when possible. Plus, it saves business owners a ton in legal expenses. 

However, if the person who breached the contract does not correct the mistake within that notice period, it’s time to move to other remedies. Depending on the type of contract, you may go into arbitration or litigation.

If the injured party needs reassurance that there will be no further damage, there is also an option to seek a restraining order. In this case, a judge will order the activity causing the breach of contract to stop. 

These situations differ from case to case and are fact-specific. All in all, the injured party is telling the person injuring them to stop.

Unsure if a breach of contract is injuring your business? As business law experts, Carson Law understands the intricacies of running a business. Contact us today to protect your business now and in the future.  

Don’t Forget About The Statute Of Limitations

It’s important for business owners to not let a breach of contract slide. If a person is leaking information about your business, you need to put a stop to it right away.

Even if you don’t notice ramifications right off the bat, that doesn’t mean you won’t notice them later. It’s better to take action and let that person know you will not stand by while they damage your business. 

Furthermore, the statute of limitations gives you only 4 years to take legal action after the breach occurs. While this may seem like an ample amount of time, business owners like you get busy. And if you’re not paying attention to all the ins and outs of your business, you may not notice it happened until it’s too late.

Even if taking action is merely giving the injuring party a period of notice to correct, you are taking a stand. They will know moving forward that you mean business and will have an attorney on your side. The likelihood of a recurring breach will be much less likely if you take actionable steps immediately. 

Prevent Breaches & Other Distractions With An Expert Business Attorney On Your Side

You’ve put more than just your money into your business. Your time, your sweat, family moments you miss – it’s all part of the investment. 

When business goes well, the investment becomes a way to provide for your family. After all, being able to support your loved ones is likely what prompted you to start your business in the first place. So, you don’t want anyone diminishing even a second of your hard work. 

At Carson Law, we understand the driving forces behind entrepreneurs and small business owners. And that drives us to work hard for our clients. Because we know that the money earned isn’t always buying mansions. It often means a new baseball glove or a dance class, a well-deserved family vacation, or finally owning a house. 

As a business attorney, Heather Carson ensures that all contracts are in her clients’ best interests. When foreseeable events occur, like breach of contract, we already have procedures in place to protect our clients. 

Don’t leave your business and all the hard work you’ve put in to chance. Reach out to Carson Law today to find out how we can help you run your business legitimately and efficiently so that you can celebrate your success.