A breach of contract can be detrimental to any business. It is important for business owners to understand their rights and options when one party fails to fulfill its obligations as outlined in a legally binding agreement. An experienced business litigation attorney can help you understand and navigate breach of contract cases.

  1. Review the Contract
    When facing a potential breach of contract, the contract should first be carefully reviewed to pinpoint the terms and conditions violated. By understanding and evaluating the contractual terms, you can effectively evaluate the severity and scope of the breach.

  2. Document the Breach
    Gathering relevant evidence is critical when building your case for a breach of contract claim. Maintain a comprehensive record of all communication, correspondence, invoices, delivery receipts, or other documentation supporting your claim. This evidence will validate the breach and demonstrate its impact on your business.

  3. Communicate With the Other Party
    Maintaining open channels of communication is crucial when addressing breach of contract situations. Take the initiative to contact the other party to the contract to manage the breach. Clearly express your concerns and desired outcomes regarding the breach so that the issue can be resolved cooperatively. By keeping communication lines open, you demonstrate your commitment to finding a solution agreeable to both parties.

  4. Consider Alternative Dispute Resolution
    Before pursuing litigation, exploring alternative ways to settle the dispute is advisable. Alternative dispute resolution (ADR) methods like mediation or arbitration offer potentially quicker and more cost-effective routes than court proceedings. Considering these alternatives can result in a more efficient and mutually satisfactory resolution, provided both parties are willing to engage in ADR.

  5. Evaluate Damages
    Assessing the full extent of the damages resulting from the breach of contract is crucial. This involves quantifying the financial losses from the breach which may encompass direct expenses, forgone profits, and other relevant costs.

  6. Send a Demand Letter
    If attempts at informal resolution prove unsuccessful, a notice of breach, also known as a demand letter, is a necessary first step. Some contracts required a notice of breach to be sent before a lawsuit can be filed. This letter should delineate the exact nature of the breach, quantify the damages suffered, and request suitable remedies or compensation.

Consult an Attorney!

If you are facing a breach of contract, consult with the experienced business and commercial litigation attorney of Craig, Terrill, Hamm, Grossman & Erwin, LLP. Our law firm in Texas can evaluate the merits of your case, provide legal advice, and guide you through the legal process. Call us!