Enforcing A Business Contract
If you own your own business, you will likely need to draft a contract. The right contract will depend on various factors, such as state laws and the specifics of your situation. There are also considerations for enforcement, such as statutes of limitations.
Running a business can be complicated, which is why you need solid legal documents to help. Here are some terms of agreement to consider when creating a business contract for your company.
Minor breaches do not involve the most important aspects of the agreement, and may include things such as price of the goods or their delivery. In these cases, the agreement may provide for a specific amount of time to remedy the breach. Even if you bring legal action to enforce the contract, the court will likely rule that the breaching party should be allowed time to remedy the problem.
A material breach is much more extreme. It refers to a failure to perform the contract that is so severe that it renders the agreement irreparably broken. The contract may dictate how the breach will be handled, and the nonbreaching party is generally excused from performance. They will likely be able to receive liquidated damages as a form of compensation.
Before taking any action, you’ll want to contact the other party to make sure they intend to fulfill their part of the agreement. If they have not substantially performed on the contract, then you can take legal action for breach of contract. Check the terms of your contract to see if arbitration or mediation is required. You can also enter settlement negotiations with the other party and try to resolve the issue through mediation or arbitration.
If you cannot reach a settlement, you can take legal action and file a lawsuit in court. Your complaint must give background to the issue, describe how the contract was breached, and include a demand for relief. You’ll want to attach a copy of the contract to your complaint.
Before filing a lawsuit, though, you’ll want to consider the other party’s potential defenses. You’ll have an advantage if you can anticipate the defenses. For example, they might claim, for instance, that the statute of limitations has passed or that there was some sort of fraud involved, such as undue influence or illegal behavior. They might also claim misrepresentation or impossibility, which means that the contract was impossible to fulfill. You need to be prepared to handle any of these defenses.
Learn More About Business Contracts
Contracts help guide your business ventures and operations. A valid contract can help ensure that work gets done and if it doesn’t, you have remedies to help you financially.
A Orlando business contracts lawyer B.F. Godfrey from Godfrey Legal can help you draft an enforceable contract. No matter what type of contract you need, we can help. Call (407) 890-0023 or fill out the online form to schedule a consultation with our office.