Has the Other Side Breached a Contract? Here’s What to Do

There are many situations in which contracts are in place to protect the parties involved. It’s all part of business.

A breach in an employment relationship can be especially harmful to a company. A breach could mean that an employee disclosed secrets to a competitor. Because of the potential damage, it’s important to deal with a known breach as quickly as possible. However, it’s also important to get all the information so you can best present your case. Here’s what you should consider doing before jumping the gun and filing a lawsuit.

Gather Information

You want to build a strong case against the other party, and that means gathering as much information as possible. Remember that there are at least two sides to every story.

Collect as much information as you can related to the breach, such as emails, memos, meeting minutes, agendas, and correspondence. Review records that show evidence of the breach, such as reports and delivery receipts. If there are third parties involved in the dispute, see what information you can obtain from them. Determine who within the organization has knowledge of the contract and the alleged breach and conduct interviews as appropriate.

Review the Contract

As you review the agreement, pay attention to the specific duties of the parties as well as the deadlines and any other conditions. Understand which provisions of the contract have been breached. Try to determine specific actions or inactions that constitute the alleged breach. Most importantly, assess the potential impact of the breach. What has been affected by the breach? Finances? Operations? Reputation?

Perform a Legal Analysis with your Attorney

Can you prove the breach? If so, what type of breach is it? What are the consequences of the breach?  You will also need to determine the damages resulting from the breach. You will need to see what remedies are available to you. For example, can you get monetary damages and interest on the damages? Can you terminate or rescind the contract? Can you simply stop performing?

Try to Resolve Quickly

Before you file the lawsuit, it is always trying to resolve a breach without litigation. What is your authority to resolve it and what is acceptable to the business?

It may be best to meet with in-house lawyers. Perhaps a senior executive meeting would be good enough. Consider non-binding mediation or voluntary arbitration.

Prepare for Litigation

As a last resort, prepare for legal action. Give notice by preparing a demand letter. Follow the dispute resolution process in the contract.

Even if you have in-house counsel, you may need to engage outside counsel as well. Set up a project plan and ensure compliance with guidelines and billing standards. Next, you will want to prepare the complaint and draft the lawsuit.

Contact a Business Litigation Lawyer Today

Contract breaches can happen in a variety of environments, whether it be in a business-client relationship, employer-employee relationship, or other situation. Make sure you protect yourself.

A business litigation lawyer from Cahall Law Firm can help you take legal action. We will help you understand your legal rights. Schedule a consultation today by filling out the online form or calling (941) 281-2019.

Source:

legal.thomsonreuters.com/blog/what-to-do-when-the-other-side-has-breached-the-contract-a-checklist-for-in-house-counsel/