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How the courts can resolve a breach of contract dispute

On Behalf of | Nov 3, 2021 | Breach Of Contract

When you sign a contract with another business, an employee or an individual, you expect them to follow through with their obligations. You may rely on them for practical needs for your company’s operations, and you likely have some financial investment tied up in the contract as well.

Whether they should supply your business with raw materials or make a payment after receiving services from your business, you expect that they will fulfill their obligations just like you will fulfill yours.

Unfortunately, some people will fail in their contractual obligations to others. When that happens, you may have no choice but to file a civil lawsuit. How might the courts help you resolve a contractual dispute?

By pushing the other party to resolve the issue

If you haven’t heard back from the other party or if they have so far refused to resolve the issue, then going to court may be the only way to resolve the breach of contract dispute. When they realize that you won’t back down, they may become more willing to negotiate.

Many business disputes settle outside of court because one or both parties want to avoid the expense and potential public relations issues that can come with business litigation.

By ending or enforcing your obligations

Sometimes, the negotiations or conduct of the other party after a breach of contract issue can permanently damage your relationship. If you no longer trust or want to do business with them, then the best outcome to a breach of contract lawsuit may be the invalidation of the contract.

On the other hand, sometimes you still need the other party to follow through with their responsibilities under the contract. A judge could potentially order specific performance requiring the other party to make good on what they promised in the contract.

By awarding you damages for the breach of contract

Sometimes, your concern after a breach of contract isn’t getting rid of your obligations to the other party or making them follow through with theirs.

Your big concern is that the other party’s behavior or failures directly affected your company’s finances. When you have evidence of financial losses related to a breach of contract, it’s possible that a judge will award you damages to reimburse you for the impact of the other party’s failure.

Understanding the options available in a contract dispute could help you better resolve the matter.