What is a Breach of Contract?
- In legal terms, a “breach of contract” (also referred to as “breaching the contract”) is related to a party’s failure to fulfill their obligation according to the terms of a contract. For example, a breach may occur when a party fails to perform a service, pay a certain amount, or when a party fails to meet the timeframes specified in the contract.
- If your company agrees to take some action or make a payment in exchange for anything of value, a legal contract may exist — even if the agreement doesn’t seem like a formal contract. For example, purchase agreements, leases, employment agreements, service agreements for internet/network services, intellectual property licenses (e.g., copyright, patent, or trademarks), and other common business transactions are legally enforceable contracts.
Contracts are essential to business dealings because they spell out the obligations of both parties and help protect your business. Sometimes disputes can arise over contracts, and one party (or both) may claim the other failed to honor their obligations under the agreement.
What happens after a breach of contract?
When a breach of contract occurs (or when one party claims breach), one or both of the parties may try to have the contract enforced on its terms, or they may seek to recover for any financial harm caused by the alleged breach.
Parties often resolve business contract disputes by filing a lawsuit and pursuing litigation – the process of resolving a claim in court. Arbitration and mediation are two methods of alternative dispute resolution (ADR) that may assist parties in resolving their breach of contract disputes.
A lawyer can help you navigate your breach of contract dispute
Breach of contract disputes can affect business needs, in addition to being time consuming and expensive. If your company has been named in a breach of contract lawsuit, or if you believe another party has failed to fulfill its contractual obligations, experienced legal counsel can help you understand your options. An attorney experienced in commercial litigation will review your contractual requirements and work with your business to understand the relationship between the parties involved and your dispute resolution goals. While evaluating your legal remedies, discuss with counsel how your business can document damages and mitigate losses. The right legal counsel will work with you to resolve the breach of contract dispute in the shortest possible timeframe and in the most cost-effective manner. Contact us today to speak with a knowledgeable business attorney.
Contact us if you have a contractual dispute or breach of contract you would like to discuss.
Francis J. Slavin, P.C. Law Firm
2198 East Camelback Road, Suite 285
Phoenix, Arizona 85016
Telephone: +1 602 381 8700
FAX: +1 602 381 1920