Unfortunately, breach of contract cases are some of the most common issues business owners face during their careers. Despite the efforts to lock down the perfect terms during negotiations, there are some variables that you cannot control in the business world.
Every case is different and will require an individual approach. However, there are some steps that business owners should remember when dealing with these cases.
What are the next steps?
When facing a breach of contract, there are a few steps you should consider carefully to ensure you are prepared and informed as you move forward:
- Review the contract: Regardless of how you want to move forward, it is important to take a close look at the contract again. Make sure you understand all of the terms and the responsibilities of each party. This is also a critical step because your contract should detail a process to resolve any disputes. Review these rules, so you can protect your own rights.
- Communicate: There are some cases where a breach is the result of an honest misunderstanding or other events out of the other party’s control. And in cases where you would like to preserve the business relationship with the other party, it is especially critical to communicate. It might be helpful to bring an attorney or a neutral third party along when discussing the breach, but you can perhaps negotiate a resolution informally before taking legal action. Even if an informal resolution is not possible, business owners should consider having a conversation about the breach to fully understand the details of the issue.
- Send a Notice of Breach: If the dispute continues, you can take formal action and send a Notice of Breach to the other party. According to the terms of the contract, make sure you specifically outline the breach that occurred, as well as consider the actions you would like the other party to fulfill in return.
Just as contracts govern the operations of a business and business relationships, they also govern how you approach a disagreement over the contract itself. Therefore, it is essential to take great care when seeking a solution in these cases.
Before you move forward – seek guidance
Texas business owners should consult an attorney after a breach of contract occurs. An experienced attorney can help you plan a strategic approach to manage this situation effectively and protect your business in these often-complex situations.