When to Pursue a Business Breach of Contract

breach Of contract attorney consultationsBreach of contract in a business context implies non-performance, defective performance, or late performance of a contractual duty. However, identifying whether a breach has occurred is not always straightforward. Here are some factors to consider that may indicate a breach of contract:

  • Failure to Perform: This is the most straightforward type of breach. If a party fails to perform their obligations as specified in the contract by a given deadline, a breach of contract has likely occurred.
  • Inferior Performance: If a party completes their obligations but the quality or level of service is noticeably inferior to what was specified in the contract, this could be considered a breach.
  • Partial Performance: A breach can also occur if a party only partially fulfills their contractual duties. This is common in construction contracts where a contractor might leave work incomplete or only partially completed.
  • Refusal to Perform (Anticipatory Breach): If a party clearly communicates they will not perform their contractual obligations in the future, this can be considered an anticipatory breach of contract.
  • Violation of Terms: A breach can occur if a party violates the terms of a contract, even if they’ve performed their primary obligations. An example might be a non-disclosure agreement where a party discloses confidential information, despite delivering the primary service or product agreed upon.
  • Transfer of Obligations: If a party unlawfully delegates their contractual duties to a third party without the consent of the other party involved in the contract, this can also constitute a breach.
  • Change in Circumstances: In some cases, a significant change in circumstances can make a contract impossible to fulfill, leading to a breach. This is often referred to as ‘frustration of purpose’.
  • Unlawful Behavior: A contract may also be breached if a party is required to engage in unlawful activity to fulfill the contract’s terms.

Factors to Consider Before Pursuing a Breach of Contract Case

Before taking the step to pursue a business breach of contract case, it is essential to weigh several factors that could impact the outcome.

  • Strength of the Case: Firstly, one must objectively evaluate the strength of the case. This involves assessing the solidity of the evidence supporting the breach, the extent to which the breach has caused demonstrable harm, and whether the contract clearly sets out obligations that have been breached.
  • Potential Costs: Legal battles can be expensive. Costs might include attorney’s fees, court filing fees, and other legal expenses. Sometimes, the costs of litigation might outweigh the potential benefits, even if you win. It’s important to conduct a cost-benefit analysis before proceeding.
  • Possible Outcomes: It’s necessary to assess all potential outcomes and their implications. Each outcome carries different consequences for your business.
  • Time Commitment: Legal proceedings can take up a substantial amount of time, which may affect your business operations. Be sure to factor in the potential time commitment when considering litigation.
  • Reputation: Litigation could potentially impact your business’s reputation. Consider how the case might appear to customers, suppliers, and the public.
  • Business Relationships: Legal action can strain or sever business relationships. You must consider whether it’s worth potentially damaging relationships that could be valuable in the future.
  • Alternative Dispute Resolution (ADR): In some cases, it might be more appropriate to resolve the dispute through ADR methods such as negotiation, mediation, or arbitration. These options can often be quicker, less expensive, and more private than a court case.
  • Legal Expertise: Having a competent lawyer, significantly influences the case. Their knowledge, experience, and strategic acumen can be the difference between winning and losing a lawsuit.

Business Law Attorney: James M. Braden

If you find yourself tangled in a business breach of contract, it is wise to seek professional legal assistance. James M. Braden, with his unparalleled experience and commitment to clients, can help navigate this challenging terrain. Don’t risk your business’s future on uncertainty. Contact James Braden’s law firm today for a consultation and reap the benefits of professional legal advice.