When a contract is breached, you may feel like you’re stuck in a difficult position. On one hand, you can take the other party to arbitration or court, depending on the requirements of the contract. On the other hand, you may still want to keep a positive business relationship with the other party.
Unfortunately, when a contract has been broken, it may be difficult to make up for losses that resulted from the breach. In that case, it only makes sense to seek out legal support and to pursue compensation for your business’s losses.
What should you do when a contract is breached?
When a contract is first breached, it is worth the time to reach out to the other party and ask what is going on. For example, if a delivery wasn’t made on time, it could be that there was a delay that wasn’t foreseen and that it won’t likely happen again in the future. The other party may be willing to compensate you for any issues that resulted from the breach.
If they are not willing to work with you, then it may be time to consider going through arbitration or other methods of dispute resolution. In some cases, if your contract allows it, you may be able to take the case to court.
You may want to ask for the contract to be enforced, terminated or to recover financial harm caused by the breach. You may be able to seek compensatory damages or other compensation to help you recover what you lost as a result of the breach of contract. An attorney can help you better understand the pros and cons of each option.