Business owners deal with a lot of issues while owning and operating their companies. It is just part of the experience. When problems do arise, figuring out the best ways to handle them can be a bit of a challenge.
One problem that you and other business owners in Tennessee may encounter is figuring out what actions to take when a breach of contract occurs. This issue may involve suppliers, employees or even customers. Regardless of who is on the other end of the deal, you have the right to seek compensation if they fail to hold up their end of the bargain. But what is the best way to do this? Is litigation the best and/or only answer?
Breach of contract basics
Business contracts are created and signed to hold the signing parties responsible for meeting certain obligations to one another. When one party does not fulfill all or part of his or her responsibilities, this represents a breach of contract. There are a number of reasons as to why one might not hold up his or her end of a business agreement. It does not make it right, however.
What can I do if a breach of contract occurs?
When a breach of contract occurs, it can have a significant impact on your business. Your company should not have to suffer due to another person’s inability to follow through with his or her end of a deal. If you find yourself facing a breach of contract situation, you do have a few options to handle the issue. The first action would be to talk out the problem. Sometimes that is all it takes. However, if private discussions and negotiations do not work, legal assistance may be required.
A business law attorney can also try negotiating with the offending party in order to resolve the issue. If successful, the contract can be modified to reflect any agreed upon changes. If negotiations with legal counsel are not successful, then litigation may prove necessary. Before going this route, though, you will need to ask yourself:
- Do I have a solid case?
- Will further mediation prove helpful?
- If I litigate and win, what are the odds of actually receiving the ordered compensation?
Litigation is actually not the answer for every breach of contract case. It really depends on the details of the situation and your current position. Your legal counsel will be able to review the facts of your case, answer any questions you have and give further guidance on whether filing a legal claim will actually benefit your situation.