What Should You Seek when Someone Has Breached a Contract?
Dec. 13, 2020
Contract breaches can lead to bitter disputes. They can soon escalate into something that ends up being bigger than the original issue. Take time to step back and consider what you would consider a happy solution before you get too involved.
A Contract Dispute Can Have Several Successful Outcomes
Here are some things you might want to achieve if someone has broken their contract:
Fix the problem: Before you send a threatening email, consider if the person knows they have breached their contract. Many people sign documents without reading them thoroughly. The person in charge now might be unaware of what their predecessor agreed to. A prompt fix is often the best solution.
Receive damages: If the issue has caused you hardship in some way, you might seek damages. If a supplier failed to deliver parts on time, you might have been unable to fulfill business orders. You might want them to compensate you for the income you lost. Alternatively, you may want to punish them by seeking punitive damages.
End the relationship: Perhaps you have been unhappy with your supplier for a long time. Their error could be the perfect opportunity to move on without incurring a penalty for being the one to breach the agreement.
Preserve the relationship: There is little point in winning a battle if it costs you the war. If you have a valuable business relationship, consider if you are prepared to risk it by entering a dispute.
Contract breaches can be upsetting. It pays to seek an impartial opinion. You need to understand how the law would view your issue. Once you have this information, you can decide on the best course of action.