Nearly all small businesses have to enter into various contracts and deal with the eventual breach of contract that may occur. Such contracts are often agreements between different businesses or individuals that legally bind them to perform or provide goods and services in exchange for a fee. These legal documents are necessary to prepare for the breach that may occur, should a party change its mind or be unable to perform.
A breach of contract occurs when either party fails to meet his obligations under the contract. The dispute often occurs when one party does not pay or the other party fails to provide the goods. Sometimes a breach occurs when an employee or independent contractor fails to do their job. These disputes are part of the many challenges that entrepreneurs and small businesses face in their daily operations. Such business and contract related disputes should not be taken lightly, as they can grow into serious matters and hurt existing business relationships. The damages done to smaller companies can be huge, who often do not have money to hire in-house counsel.
Not all breaches are harmful, as some breaches may be minor. In this instance, the parties themselves may be able to work out a solution and avoid a lawsuit. Alternatively, if a major breach with damaging effects has occurred, a lawsuit may be the only remedy. The most common remedy available for breach of contract is compensatory damages, or the payment of money. Parties may sometimes obtain consequential and incidental damages and attorneys’ fees as well. No matter what course is taken, it is essential that small business owners retain the services of an attorney to resolve these issues effectively.