Contracts are binding agreements between two or more parties and are essential to doing business. Unfortunately, sometimes one party doesn’t hold up their end of the bargain, which can lead to a breach of contract. When you suspect that your company has been the victim of a breach of contract, there are some immediate steps you should take. This article discusses these quick steps to take if you suspect a breach of contract.
1) Determine If There Has Actually Been a Breach of Contract
Determining may seem obvious, but it’s important to ensure there has been a breach before taking further action. You’ll need to review the terms of the contract and compare them to what has happened. If there is a discrepancy between the two, there has likely been a breach of contract.
When unsure whether there has been a breach, you may consult with, an attorney specializing in contract law. They can help you review the contract and determine if there has been a contract breach.
2) Notify the Other Party of the Breach
After you’ve determined that there has been a breach of contract, the next step is to notify the other party. You can do it in writing or via email. In your notice, you should include the following:
The Date of the Breach
You’ll need to include the breach’s date so that the other party knows when it happened.
The Contract Clause that was Breached
It would help if you mentioned which contract clause the other party breached so there is no confusion.
The Remedy you are Seeking
Make it clear what you expect the other party to do to remedy the situation.
When the other party doesn’t take action to remedy the breach, you may have grounds to file a lawsuit. However, it’s always best to try and resolve the matter outside of court first. An attorney can help you draft a notice of breach and determine what your next steps should be.
3) Try to Resolve the Matter Internally
Once you’ve notified the other party of the breach, you should resolve the matter internally by trying to agree with the other party without going to court. You can settle the issue through negotiation, mediation, or arbitration. You can write the deal and have both parties sign it if you agree. This will make the agreement legally binding, and it can help prevent future breaches.
Legal action is needed when you can’t resolve the issue internally. An attorney can help you determine your next steps and represent you in court if necessary. This may take some time, but protecting your company’s interests is essential.
Breaches of contracts are a serious matter and can have a significant impact on your business. Entering into business with someone always carries some risk, but you can help minimize that risk by taking some simple steps. Reviewing and understanding contracts before signing them, keeping good records, and knowing your rights are all important things to do to protect your business.