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Is going to court the only way to resolve a breach of contract?

On Behalf of | Jan 7, 2022 | Business & Commercial Law

You depend on other parties to follow through with their contractual obligations to your business. Whether you bring in outside IT support or need HIPAA-compliant document destruction, you need other parties to follow through with their promises to your company.

When someone else violates their contract with your company, you do have the legal right to take them to court. The courts can evaluate the contract itself for validity and enforceability. They can then enter a ruling, possibly requiring specific performance from the other party or award you damages for their failure.

Is filing a civil lawsuit the only way to resolve a breach of contract issue impacting your business? 

Communication is always a good option

Yes, the civil courts can help you resolve a contract dispute, but filing a lawsuit shouldn’t be your go-to first response. Communicating with the other party can help you successfully resolve the issue. After all, you may hope to preserve your working relationship with the other party, and a lawsuit could cause permanent damage.

Reaching out to resolve the issue before taking legal action can help you understand what happened. Maybe they misunderstood what you wanted, or perhaps there is a completely reasonable explanation for the delay in their performance of their obligations to you.

If they refuse to communicate or will not remedy the issue, then you may want to look into going to court.

Filing a lawsuit can make people more compliant

When you do file a lawsuit, you likely will have to wait for your day in court. It can take months before you have a hearing in front of a judge. The nice thing about that delay is how it may motivate the other party to settle the matter.

Rather than risk an unfavorable judgment, now that they know you are serious about enforcing the contract, they may be more open to negotiation. You may be able to resolve the issue outside of court. If you still can’t get them to follow through with their promises, then a judge could help.

Recognizing are the options available for resolving a business contract dispute will help you protect your company’s margins and daily operations.