Contracts are some of the most important tools that Georgia businesses have in protecting their legal and financial interests. These agreements clearly establish the requirements and expectations of both parties in a business relationship. Your company can use contracts to reduce complications in everything from dealing with employees to purchasing supplies from a third party.
Even in a casual agreement, having a written contract is a smart idea. Should one party fail to adhere to the agreed-upon terms, it can expose your company to stress, financial loss and other issues. Without a legally enforceable agreement, you may not have any grounds for recourse. If you do have a contract and the other party breaches that contract, you will have the ability to pursue specific remedies for losses and damages.
What should you do next?
When it becomes clear that the other party in your agreement breached the terms of the contract, you may not be sure what to do next. In some cases, litigation is necessary, but you may be able to simply reach out to the other party to discuss the situation. This may be enough to compel cooperation, or you may be able to discuss a solution that will work for everyone. You may find it helpful to have an attorney facilitate these conversations or reach out on your behalf.
If it becomes clear that legal action is necessary, you can move forward with a civil claim against the other party. A court may compel the other party to meet the terms of the agreement, or you can seek damages and monetary compensation. Types of damages that may be available include:
- Punitive damages — These damages go above the original amount of losses suffered, given in cases where the breach of contract was particularly damaging.
- Compensatory damages — These damages will compensate you for any losses you suffered as a result of the breach of contract.
- Liquidated damages — These are damages specifically outlined in the contract and agreed to by both parties, based on estimates of potential losses.
Your company’s interests
If you are facing the potential for financial loss and other complications thanks to a breach of contract issue, you may find it beneficial to work with an experienced business law attorney. A legal professional can evaluate the situation and determine how you can move forward to protect the best legal and financial interests of your company.