When business deals hit a snag and a contract breach leaves you in the lurch, it can feel like going through a storm without a compass. In these scenarios, knowing what to do next can make all the difference.
This blog post outlines the immediate steps to take after a contract breach, helping you regain control and move forward. After reading, you can develop effective strategies to protect your business interests, even after agreements fall apart.
How should you handle a contract breach?
Addressing a contract breach starts with ensuring that there truly is a breach. Review the contract carefully, and if you need clarification, consult a lawyer.
Next, determine if your company must continue fulfilling its obligations. A breach by the other party doesn’t automatically release you from your duties, and formal steps like issuing a notice may be necessary.
You should also check for any limitations on remedies in the contract. Understanding these will guide your next steps, such as seeking compensation for damages or considering alternative dispute resolution (ADR). If you are required to hold an ADR, check if there are any exceptions.
It’s also extremely important to keep all records related to the breach. This includes emails, reports and any other evidence. To ensure the safety of these papers, implement a litigation hold. This will ensure that all necessary documents are safe and available for legal purposes.
Why should you call a lawyer?
In the aftermath of a contract breach, having a lawyer by your side can be a crucial difference-maker. An experienced and compassionate business attorney can help you understand the complex legal landscape and assess your situation. They can also advise on your next course of action and represent you in court if necessary.
