After spending several hours drafting a fair contract, you and the other party signed the agreement. If a breach of contract happens, would you know what to do?
Chron explores remedies for breached business agreements. Learn which steps to take to rectify the situation and protect your rights.
Pinpoint the breach
Before approaching the other party, identify the breach. Note the other person’s or company’s obligations in the agreement and how the other party did not carry out those responsibilities. Once you identify the breach, you create a groundwork for requesting that the business or person carry out the contract’s terms.
Before taking legal action, consider sending the other party a demand letter. Other than potentially avoiding court, another reason to submit a demand letter is to save money on legal fees. Keep the letter short and to the point. Let the recipient know of the breach and include the other party’s contractual obligations. You may want to include how taking the matter could cost you both time and money. Ensure the letter notes how you want the recipient to make the matter right.
Take legal action
Sending the demand letter may not prove effective in making things right. If not, you may have no choice but to hire a professional and take the issue to court. Should you win your case, you could receive financial damages that restore the money you lost because of the agreement breach. The judge may decide the breaching party must fulfill the contract.
A broken agreement could set your company and business goals back. With the right strategy, you protect the hard work you invested in your business venture.