Contracts play a key role in the daily lives of every person. Even simple store transactions have legally binding agreements at the center. As such interactions often run smoothly, we simply forget that contracts are present.
As a business owner, contracts are more likely to remain at the forefront of your thoughts. Again, commercial agreements often run their course without causing issues to either party. Nevertheless, there are situations where disagreements can arise. Outlined below are some important factors to consider when resolving a commercial breach of contract.
Can you talk things through?
While litigation is a possibility, it should not always be your first port of call. Breaches of contract do not necessarily arise out of malice. Sometimes, a breakdown in communication or simple error can lead to one party feeling aggrieved. While your immediate reaction may be to bring the business relationship to an end, this is not necessarily the action that is most profitable.
It is usually in the best interests of all parties to reach a mutual agreement. With patience and effective means of communication, there is no reason why this cannot be achieved.
Can you quantify your damages?
Whether or not you choose to pursue litigation, you will need to have an accurate measure of any damages that have resulted from the breach. This could help the other party understand your point of view while exploring potential resolutions. If the matter does reach the courts, having accurate accounts will also offer assistance when the judge is contemplating potential legal remedies.
Having watertight commercial agreements is key to the success of your business. If you feel that your rights have been violated, you should explore your legal options as a business owner in California.