Contracts are useful way to protect the interests of your company. Unfortunately, however, other parties may deviate from the terms of the agreement or refuse to follow the terms of the contact. A breach of contract is more than just an inconvenience – it is a threat to the well-being of your Texas business.
It is in the interests of all business owners to understand how to proceed when contract matters do not go as planned. You have the right to take action, enforce the terms of the contract and seek a beneficial resolution to the matter. There are various remedies that may be available to you, including securing damages.
The next steps for your company
Businesses of all types use contracts for anything from sales to employee agreements. In the event you find your company involved in a dispute over a contract, it is prudent to seek a satisfactory conclusion in a timely manner. It may be possible to reach an out-of-court agreement, but often, it is necessary to take legal action to recover losses from any financial damage that occurred and compel the other party to fulfill the terms of the agreement.
The damages your company may be able to pursue due to a breach of contract matter depend largely on the details of the individual situation. Your financial losses, legal expenses, long-term impact on your company and multiple other factors may play a role. Types of damages you may be able to seek include:
- Punitive damages, for particularly serious or wrongful breach of contract
- Compensatory damages, for recovery of financial losses and more
- Liquidated damages, agreed upon by both parties in case of a breach of contract
In addition or instead of financial compensation and damages, you may be able to seek specific performance. This is a court-order that requires the other party to fulfill obligations and duties outlined in the contract.
Fight for a positive outcome
Breach of contract matters can be particularly complex and difficult for a small business, but you do not have to walk through this situation alone. With guidance, you can seek a satisfactory conclusion to your concerns and protect the financial well-being of your business above all else. If you are dealing with the complicated fallout that comes with a breach of contract, you may find it helpful to first discuss your concerns with an experienced business disputes attorney.