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Your rights when another business breaches its contract with you

As the manager, owner or executive of a business, you make certain to fulfill your contractual obligations. You always try to do right by your employees, your vendors and your clients or customers. Unfortunately, not everyone operating a company is that ethical or organized.

Some people completely forget that they have contractual obligations to others, leading to failures that can cost their customers or clients money. There are also people who will sign a contract that they know they have no intention of upholding.

When another business defaults in its obligations to your company as outlined in a contract, you may need to take efforts to enforce your agreement.

You can resolve the matter independently in some cases

You don’t always have to litigate a contract issue. Sometimes, notifying the other party is all you have to do to resolve the matter. After reviewing your contract to make sure there is no confusion on your part, you can reach out to the other business and advise them of how they have breached their contract with you.

Whether they failed to perform a service or deliver goods, knowing they made a mistake could prompt them to quickly fulfill their obligations to you. If they don’t or won’t, you can always go to court because of a breach of contract.

What happens once you file a lawsuit?

Sometimes, filing a civil suit is enough to scare the other party into compliance. They might make good on their contractual obligations or at least negotiate a solution with you to avoid the embarrassment of court. They might also realize that their actions could impact their reputation and future income.

If they still won’t uphold the agreement, you can ask a judge to enforce your contract. After reviewing the contract and other documentation you provide, the courts can order specific performance requiring the other party to complete their contractual obligations. They could nullify the contract in some cases or even towards your damages if there are financial consequences for the other party’s failure to follow through on your agreement.

Understanding how to handle a breach of contract will help protect your business against the incompetence or misbehavior of others.

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