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What happens if a contract's breached?

Breaching a contract is a serious offense. If you have a contract with another business, and they don't hold up their end of the arrangements, it could put you in a difficult position. No one wants to turn to the law for help, but when your business is on the line, a violation of a contract may be enough to result in a claim.

Your contract sets up certain obligations that you and the other party must fulfill. For example, if you have a contract where you expect the delivery of goods from Monday through Friday and pay on Wednesday, but the company delivering goods never arrives, they've breached the contract you have together.

If the company fails to deliver goods as promised, it is making a material breach of contract. That means that it negatively affects you and is a serious breach. This type of breach is serious enough that it sets you up for a lawsuit so that you can hold the company liable for its failure to meet the requirements of your contract.

What happens after a breach of contract?

After the contract is breached, you can do a few things. You may reach out and attempt to resolve things on your own. Perhaps the other company didn't realize it missed a delivery and can rush an order to you at no cost, for example. That might be an acceptable solution. On the other hand, if your attempt at a resolution doesn't work, you can take the case to court through a lawsuit and seek compensation for your losses.

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Law Office of Alexander Alvarez
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