Contract disputes and anticipatory breach

Contract disputes and anticipatory breach

On Behalf of | Oct 17, 2019 | Contract Disputes |

A breach of contract often takes Baton Rouge businesses by surprise. These businesses typically negotiate in good faith to reach agreements that further not only their interests, but also those of the other party to the contract. Yet, sometimes parties to a contract are unable to meet their obligations or they simply refuse to meet them. Regardless of why it occurs, a breach of contract can leave a business scrambling to secure much needed supply chains, services, goods, and performances.

Not all breaches of contract are surprising, though. In fact, an anticipatory breach occurs when a party’s actions indicate that it intends not to live up to its end of the bargain. Although some parties may come out and vocalize their intentions, this isn’t necessary in order for anticipatory breach to be found. When this occurs, the other party can be relieved of its reciprocal obligations under the contract.

Additionally, legal action can be taken much more quickly when anticipatory breach is identified. This can lead to a quicker resolution of the matter, meaning that a business is able to recoup damages and carry on with as little delay as possible.

However, in order to succeed on an anticipatory breach claim, a party must demonstrate that the breaching party’s actions unequivocally led them to believe that they would fail to perform their obligations under the contract, and they must take steps to mitigate their losses. This latter part means that a wronged party may want to stop payments to the breaching party and begin seeking out other contractual agreements to suit its needs.

Contract disputes can be hotly contested because there is a lot at stake. Baton Rouge-area businesses shouldn’t leave these matters to chance but should, instead, seek competent legal guidance from an advocate who will fight to further those businesses’ interests.