Businesses in Pennsylvania draft contracts for all types of different circumstances. They sign employment contracts when hiring new workers. They negotiate contracts with vendors and service providers. The benefits of establishing written contracts include greater clarity about obligations to other parties and reduced likelihood of disputes in the future. Unfortunately, simply signing a contract with another party does not ensure that they completely fulfill their obligations.
People and businesses frequently violate contracts by engaging in prohibited activities, failing to deliver goods or refusing to provide services as outlined in the contract. A material breach of a written contract can cause financial losses for an organization. What remedies are theoretically available if they pursue the matter in civil court?
Contract termination
Most business contracts include special clauses that ensure the contract remains enforceable even when there is a breach of certain parts of the agreement. The business coping with losses triggered by a contract breach may still have to make payments to the other party or continue to do business because of the written agreement. A breach of contract can undermine the relationship between the parties and force one party to look for an alternate source of services or materials. They could ask a judge to terminate the contractual agreement so that they do not have any ongoing financial obligations to the other party.
An award of damages
Material contract breaches often cause provable economic losses. A business that needs to deliver products to a client may be unable to do so if a supplier does not deliver raw materials. They might lose a very valuable contract or face penalties because of the terms of an agreement with the third party. Contract violations can lead to a variety of different economic losses that may justify a request for damages. Judges can award a plaintiff financial compensation for the provable losses triggered by a contract breach.
An order of specific performance
Pennsylvania civil court judges also theoretically have the authority to enforce a contract. An order of specific performance can compel the defendant to perform certain functions, such as completing a project or delivering materials in accordance with the contract.
A combination of these three possible solutions can help a business negatively affected by a contract violation resolve the matter in the best way possible. Reviewing the contract in question is often a useful starting point for those affected by a breach of contract.
