A breach of contract can occur even in the most carefully crafted contract. In some cases, there is pretty much nothing you can do to prevent it from happening. However, finding an efficient and effective resolution can help mitigate your losses and protect your interests.
Understanding your options will empower you to make informed decisions and chart the most suitable course to expediently resolve a breach of contract.
Communication is key
The first and often most crucial step in resolving a breach of contract is to initiate open and direct communication with the other party. A candid discussion about the breach and its impact can lay the foundation for finding a mutually agreeable solution.
You can avoid unnecessary conflict and potentially resolve the issue on your own without outside intervention – a much faster and cheaper way out. It can also help preserve positive relations with the other party.
Mediation can help find common ground
If direct negotiation proves challenging, engaging the services of a mediator can be highly beneficial. A neutral third party can facilitate communication, explore potential resolutions and find a mutually agreeable resolution.
Mediation is a non-adversarial process, promoting amicable solutions and enhancing the chances of a swift resolution. Alternative dispute resolution measures like arbitration can also help resolve the matter.
Litigation may be necessary
Litigation may be a viable option if the breach remains unresolved despite your efforts. Filing a lawsuit can compel the other party to address the dispute formally, and you may recover damages if applicable.
However, weighing the potential time, costs and risks involved in litigation is essential before pursuing this path. An informed assessment of your situation can help you choose the path that best aligns with your unique circumstances and business objectives.