How to handle a contract breach

On Behalf of | Aug 3, 2021 | Business and Commercial Law |

Signing a contract gives your business rights and obligations. When the other party to the contract does not uphold their own duties, you can take the case to a New York court in a breach of contract action. First, it is necessary to understand what can be a breach of contract.

A contract is a mutual agreement

A contract is always a set of mutual promises. Each party promises to do something or not do something. These obligations become effective upon the signing of the contract. Usually, this happens in a written agreement, but some oral contracts can also be enforceable. A common form of contract is a lease agreement. The landlord agrees to provide a habitable space for the tenant in exchange for rent and following the landlord’s rules.

Resolving breach of contract cases

A breach of contract does not automatically have to mean a lawsuit. Sometimes, the parties communicate among themselves to resolve their differences without taking the case to court. However, you can file a case against the person or business in breach because they have taken your legal rights. In fact, breach of contract lawsuits are among the most common form of court cases. If you are on the receiving end of a major breach, you may have no choice but to file a lawsuit. The court will then look at the terms of the contract and what the defendant did to determine if there has been a breach. They may order performance or payment.

If you have signed a contract and are experiencing difficulties in performance, you should contact a business and commercial law attorney. Your lawyer could review the terms of the contract and advise you whether you have grounds for a lawsuit.