Strong and enforceable contracts are an important aspect of doing business. Your Georgia small business may benefit from the protections provided by employee contracts or contracts with other parties, but you will also benefit from knowing what to do when contracts are broken. When there is a violation of a contract, it can lead to financial loss and complications for your operations and financial security.
Business contracts should clearly outline the rights and responsibilities of both parties. However, even with a perfectly worded contract, sometimes one party will violate the terms of the agreement. If this happened and your company suffered the negative impacts of a breach of contract, it may be necessary to take legal action to protect the interests of your business.
What should you do next?
When there is a breach of contract, it can cost your business money as well as valuable assets, time and manpower. Finding reasonable solutions in a timely manner is in the best interests of your company. One of your first steps is to seek a possible out-of-court solution. It may be possible to work with the other party to resolve the dispute, secure financial compensation or otherwise compel a fulfillment of the terms that you agreed to.
If an out-of-court solution does not work for your situation, you may need to take legal action to resolve the situation effectively. Contract disputes and breach of contract issues may necessitate a lawsuit, through which you can seek a reasonable remedy, such as:
- Compensatory damages
- Liquidated damages
- Punitive damages
- Nominal damages
In some cases, it may be appropriate to seek specific performance, which is a party's court-ordered fulfillment of the terms of the contract. The appropriate types of damages and remedies for breach of contract issues differ on a case-by-case basis.
The right solution for a complex matter
Breach of contract matters are complex issues, and you may find it beneficial to reach out to a legal professional to learn more about the legal options available to you and the most appropriate way forward.
A contract dispute can be damaging to your business, and out-of-court solutions are not always effective or possible. Through the appropriate legal action and with guidance, you may be able to stop the damage and seek financial compensation, damages and other remedies. If you believe that disputes involving your business contracts are threatening the well-being of your company, you may find it beneficial to seek a complete evaluation of your case.