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What should you do if someone violates a business contract with you?

On Behalf of | Jun 24, 2021 | Business Law

When you create and sign a business contract with an individual or company, you hope for a favorable outcome. Unfortunately, things did not go according to plan with a recent agreement and you must navigate a breach of contract.

Here are some suggestions on how to proceed:

Identify and address the issue

First, review the contract to remind yourself of the other party’s responsibilities and determine for certain whether the company or person violated the terms. You do not have grounds for requesting contract compliance if you do not know where or how the other party erred in upholding your agreement.

Issue a demand letter

After pinpointing the violation, draft a demand letter that explains the other party’s responsibilities and how they failed to uphold them. Note your desire to handle the issue out of court and how you want the other person or organization to make the matter right.

Consider alternative dispute resolutions

Besides a demand letter, you may prefer to bring in a third party to help you and the other organization or business person reach a compromise. Mediation, an example of an alternative dispute resolution, aims to help those involved in a disagreement explain their side of the matter through civil discourse and feel heard.

File a lawsuit

If you cannot agree, you may have no choice but to sue the other party. A judge decides if the violating party must complete its contractual obligations, pay financial damages, pay to finish the task or pay you the money you lost because of the contract breach.

You must handle contract violations carefully. Knowing how to proceed helps protect your rights and could ensure you remain on the right side of California law.


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