Is It Possible to Breach a Contract?
Feb. 12, 2020
Some of the most foundational documents of any sort of business are contracts. You may have contracts with other businesses, contracts with independent workers, and contracts even within your business itself. With the large amount of contracts that any business deals with, it is common for contract dispute to come up at some point. In some cases, the dispute surrounding the contract may be so severe that one party is tempted to breach the contract. According to the National Federation of Independent Business, it is indeed possible to breach the majority of contracts, but this is not an advisable course of action most of the time.
When you enter into a binding contract of any sort, you should be assured your side of the bargain in the process. In some cases it may be indeed the best course to breach the contract, depending on what the penalties are involved with doing so. Most contracts come with some sort of monetary penalty attached, so depending on how heavy this penalty is you may find it more beneficial for your business to walk away from the contract and take the penalty as compared to seeing the contract through. However, most contracts are structured so that breaching them is not monetarily wise.
Additionally, breaching a contract may lead you to open litigation. So not only will you be responsible for the cost of breaching the contract, but also court costs. In some contracts, there may even be terms that require the party who breaches the contract to cover all attorney fees.
Essentially, while breaching a contract is usually possible, the cost in both time and money for doing so are usually not worth it.