The written agreements that you negotiate with your suppliers, service providers and employees help protect your business. They clarify your obligations to others and make their obligations to you enforceable, thus making covering your costs more predictable.
No matter how airtight you try to draft your documents to be, there will always be other parties who will try to find a way to avoid their obligations to you. A breach of contract scenario could leave you fighting against unfair competition, struggling to find a new supplier or worried about fulfilling your agreements with your clients.
What are some of the ways that you could resolve a breach of contract situation that harms your business?
1. Dissolve the relationship
If the other party has failed to fulfill their obligations to you, then you may decide that you no longer wish to employ them or purchase materials from their business. Depending on the terms of the contract you signed, terminating it may be as simple as sending written notice to the other party. Other times, you may need to go to court, especially if you also hope to secure repayment for any funds that you paid for services or materials you did not receive.
2. Compromise in mediation
If you would prefer to continue doing business with the other party but cannot ignore the breach of contract because of the harm it has done to your company’s operations, professional mediation might be an option. Bringing in a neutral third party can help you and the other business or individual subject to the contract find a solution that allows you to continue doing business together despite the dispute.
3. Seek damages or other solutions in civil court
When the other party will not cooperate with you or when they have caused significant financial damage to your business, going to court can be a viable solution. A judge could order them to fulfill their contractual obligations or compel them to refund any amount you have already paid. Additionally, a successful claim and civil court could help you minimize the damage to your company’s reputation caused by the situation.
Considering every option will help those embroiled in a business dispute arrive at the best solution possible.