What Steps Do I Take When A Breach Of Contract Occurs?
Aug 16 2019 0

What Steps Do I Take When A Breach Of Contract Occurs?

Contracts are a necessary part of any business deal. No matter how well the people involved know each other and no matter how clearly the terms are spelled out, there is always the chance that the other person might breach your contract. Whether or not a contract is with another business, a vendor, an employee, or any other party, a breach could easily cause economic damage to your business.

Luckily, a contract will usually also make your personal rights known and make clear what choices you have as far as finding a legal remedy is concerned, should you suffer a breach. Our qualified contract and business attorneys are able to help you through each part of this process in order to make sure that the issue is settled as favorably and efficiently as possible.

What Steps Do I Take When A Breach Of Contract Occurs?

Step One

Communicate with the other person. Oftentimes, a person involved in a contract might not even know that they are in breach of the commitment. If the breach has to do with non-payment, there will be ways to come to terms with a payment plan or some other arrangement to meet the terms of the contract without having to actually take any legal action. It is always wise to talk to the other party or to have your attorney do so on your behalf when it comes to exploring all of your choices in getting this matter resolved.

Step Two

Be aware of the statute of limitations. You will not have an unlimited amount of time available to you in which to take legal steps towards enforcing your contract or recuperating your financial damages. According to the law in the state of California, you only have four years to file a breach of contract claim for written contracts, in the majority of circumstances. A few written contracts will only allow for a two-year window. You should never put off speaking with an experienced California business attorney since the clock on your statute of limitations has already started ticking.

Step Three

Give some consideration to alternative dispute resolution. Not every single breach of contract case needs to go straight to court. In a lot of instances, the issue is able to be remedied via a form of alternative dispute resolution. An example of this is the process of mediation. As a matter of fact, there are some contracts that demand that any form of litigation be brought to mediation or arbitration first to see if a simple, pleasant solution to the issue can be managed. Alternative dispute resolution will generally save you both time and money and will keep the details of the breach confidential. It is also a less adversarial process, so you may avoid burning bridges.

If you have additional questions regarding what to do when you encounter a breach of contract, please get in touch with the Leiva Law Firm by calling 818-519-4465. We have an extensive background in helping businesses avoid breach-of-contract claims and drawing up precise and enforceable business agreements and contracts. We can help you examine your legal rights in Spanish or in English.

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