Contracts including prenuptial agreements and business contracts are an essential part of any business operation. Unfortunately, a breach of contract is always a possibility and it’s important to know what your first step should be to resolve the situation. Prenuptial agreements also called antenuptial agreements or premarital agreements are agreements between parties contemplating marriage that alter or confirm the legal rights and obligations that would otherwise arise under the laws governing marriage that end either through divorce or death. It’s permanently associated with controversies about their appropriateness and enforceability and these are not new in the US.
The consequences of breach of contract can sometimes be very severe and often involve monetary damage. It will depend on what type of contract occurs when one of the parties to the contract otherwise fails to perform under the agreement for no lawful reason. If you are searching for a bondsman in Brighton to help you with breach of contract issues, you can check Brighton bail bonds. But what does a breach of contract mean? Well, to get a perspective, imagine a customer hires you to complete a job and then you finish the job but the customer never pays you for the work. Indeed, the customer broke your agreement and now you don’t have the money you were promised. This is what a breach of contract is. Whether you are the owner of a small business or an individual that offers services, or a couple who agreed on a prenuptial agreement, breach of contract is something that you should expect to occasionally face.
Now, let’s go to the basics. Contracts are used to formalize the relationship between two or more parties. It will establish several conditions and obligations and can contain a variety of requirements including technical requirements (time needed to complete a construction project), survival requirements, reporting or information requirements, legal requirements, or financial requirements.
Always remember that when it comes to a contract, when one party to a contract fails to fulfill a requirement, a breach of contract has occurred. Meaning, the contract has been broken because terms have not been fulfilled with on legal excuse. In smaller claim courts, suits for breach of contract are extremely common. If you find yourself in the middle of a breach of contract, here are five things you can do:
Abandon the need to litigate
Sometimes a breach of contract warrants punitive measures, but in many situations can be salvaged without expensive litigation. The process of pursuing legal action is a lengthy and often costly endeavor and it’s frequently unnecessary. Many breaches of contract can be quickly cured with alternative methods of dispute resolution, making a “win-at-all-costs” approach harmful if it’s not strictly needed.
Pursuing alternative methods of dispute resolution or ADR to make the other party pay for their mistakes can undermine the benefits of arbitration or mediation entirely. Mediation falls apart under such attitudes and arbitration can balloon into a lengthy sort of pseudo-court trial that ends up costing just as much as filing an official lawsuit would. In other words, focus on creating a mutually beneficial situation and preserving business relationships rather than outright enforcement, at least from the start.
Talk to the other party
Oftentimes, breaches of contract result from an honest mistake which is either from a misunderstanding of the requirements or extenuating circumstances. There may be a genuine need to rework the terms of the contract to make sure it remains profitable for both parties. Revisiting contracts on a routine basis is a good practice because after all, as your business grows, its needs and capabilities may change, which makes an occasional adjustment desirable.
Many contract disputes can be resolved by simply talking things out. As long as both parties have the intention of preserving the relationship and seeing that both benefit, honest discussion on how to move forward can have profitable results. One example is that if the breach occurred because of nonpayment, then arranging a payment plan can make sure you get paid while mitigating penalties for the other party. In some instances, you might consider a mediator when discussing possible options. The role of a mediator is to keep the conversation focused on a productive course and help each party reach a mutually agreed-upon resolution.
Consider what damages are involved
If you feel that it is unlikely to have a resolution through mediation, it may be time to start assessing how much you’re owed in terms of damages. Your damages may include outstanding payments, lost revenue from mishandled intellectual property, expenses from additional costs incurred, and so forth. The court may also require specific performance on which the other party will be legally required to perform certain actions such as making up missed payments or changing their processes to better conform with the terms of the contract.
At this stage, one of the primary purposes of assessing how much you might be owed in damages is to determine whether a lawsuit is worthwhile. If the damages suffered are insignificant, then litigation typically won’t be considered viable.
Attempt alternative methods of dispute resolution
If you see that there are some damages, consider reaching a settlement agreement. This is where ADR methods such as arbitration and mediation come in. Arbitration is more formal than mediation as the arbitrator makes a ruling on what should be done, often resulting in a settlement or other agreement. While it functions like a courtroom hearing, there are fewer rules in place. Moreover, ADR can be much faster than taking a contract dispute to court since you spend less time gathering evidence or sitting through lengthy proceedings. However, it typically requires some amount of cooperation from both parties because a highly adversarial dispute likely won’t benefit from arbitration or mediation.
Determine if a lawsuit is needed
You will need to determine whether a lawsuit is needed especially if the ADR did not work. Part of assessing it is knowing the damages and comparing those to the cost of litigation, but you will also need to assess other matters, such as how the evidence stacks up and whether you’re within the statute of limitation. Another matter to consider is how well you have enforced your contract in the past. If you have had multiple breaches and did nothing in any of those instances, then there’s less chance you’ll be able to get a court to enforce this current breach either. You’ll also want to consider the potential defenses the party might use and so you might want a legal professional with a great deal of experience on contract disputes. If you have suffered significant damages and have a compelling case, you probably stand a decent chance in court. For guidance, you can always go to a bondsman in Brighton.
Be amicable and fair. These are just the first steps to take if you have a breach of contract, but if things went far, you can always ask for professional help from Brighton bail bonds. It’s best to resolve this type of situation on as friendly terms as possible to avoid needless expenses, including those of losing a valued business relationship.