A breach of contract can cause serious problems for a business that relies on a contract relationship it has with its business partners. As a result, it is important for businesses who are seeking to enforce a contract or have been on the receiving end of a contract breach to understand their legal rights and remedies.
A contract is an agreement between parties that outlines their rights and obligations to one another. In the context of a business setting, a contract memorializes the business relationship between the parties. In the course of business, a company may encounter breaches of real estate contracts, business contracts and other contracts. Each breach of contract can cause financial injury and disruption to the company.
A breach of contract occurs when one party does not honor its obligations outlined in a contract and fails to perform according to them. The company on the receiving end of the breach may be able to damages for the breach. Remedies for a breach of contract may include financial damages, specific performance of the contract or rescission of the contract. Depending on the goals of the parties, it may also be possible to negotiate a solution and resolution to the breach.
In addition, it is also important to make sure contracts are properly drafted an executed at the outset of the business relationship which may help avoid problems down the road. Most business relationships rely on a contract relationship which is why trained guidance throughout the process can be helpful and can also help guide a business owner through the complexities of contract drafting, execution and disputes.