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How do you navigate a breach of contract?

A few months ago, you entered an exciting contract with a business partner, employee or vendor. The business relationship started well, but now, you feel the other party violated your agreement.

Chron provides insight into how to handle contract violations. Learn how to navigate the situation the right way to see whether you may preserve the agreement and everything in it.

Pinpoint the breach

The first thing to do is determine whether a breach actually occurred. Refer to the original agreement to refresh your memory on everyone’s individual obligations and pinpoint the violation. You cannot offer a remedy if you do not know the specific issue you seek to address.

Submit a demand letter

You do not have to take immediate legal action if you discover the other party breached your agreement. Instead, draft and submit a demand letter as a way of (hopefully) avoiding a lawsuit. In the letter, give details about the breach and the other party’s contractual responsibilities. Break down how you want to make things right, and gently mention how taking the matter to court may become expensive and tarnish the other party’s professional reputation.

Take legal action

If a demand letter does not suffice, you may have little choice but to sue the responsible party. By turning to a judge, you may receive compensation for losses incurred because the other party failed to uphold the contract. Depending on what the judge decides, you may receive full or partial compensation for the money you lost or the amount it takes to complete the task. Alternatively, the judge may require the other party to finish the job according to the original agreement.

Take steps to protect your rights and your business. Understanding contract breach responses helps to pave the way to a resolution.

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