The basis of almost every business deal is a contract. As a business owner, you always want to ensure you have properly drafted contracts that fully protect your rights. While a contract should clearly dictate the obligations of each party, many parties may still fail to fulfill their end of the bargain. A breach of any contract can result in substantial losses for your company, whether the contract was with a customer, a vendor, an employee, or another business.
A good contract should also always spell out your options in the event of a breach. This dictates how you may go about seeking legal remedies for your company’s losses as a result of the breach. While a contract may set out specific rights, you should always take certain steps to protect those rights. If you call our experienced Houston business law attorney as soon as you learn of a possible breach of contract, we can assist you in fully exercising your rights to relief.
- Discuss the matter with the other party. In many situations, the other party may not know that they breached the contract. If they failed to pay for goods or services, you might decide on a mutual solution involving a payment plan to fulfill the agreement without burning any bridges. As a business-to-business collections attorney, we can assist you in negotiations regarding non-payment.
- Understand your time limits. If you cannot reach a resolution by talking to the other party, you may need to take legal action to obtain relief. Texas has a four-year statute of limitations for most breach of contract claims. This may seem like a long time, however, the preliminary steps prior to filing a claim can take time, so always call an attorney as soon as possible.
- Calculate your losses. A breach of contract claim must request a specific type of relief. Generally, you will want to request money damages for the losses incurred as a result of the breach, and you should always have a skilled contract dispute attorney carefully calculate the value of these losses. In rarer cases, when money will not adequately provide relief, you may request that the court order specific performance of the contract.
- Try mediation. You do not always have to head straight to court to resolve a breach of contract case. Sometimes, alternative dispute resolution tactics, such as mediation, can help you come to a mutually beneficial agreement without the cost and time of litigation. Mediation can also help preserve the business relationship, as it is a far less adversarial process.
If all of the above options fail to resolve the matter, a skilled business contracts attorney can help you prepare to file a lawsuit.
Contact a Houston Business Law Firm for Assistance Today
The Weisblatt Law Firm regularly assists and represents businesses of all types and sizes with contract drafting, resolving contract disputes, and a wide range of other legal matters. We can assist with everything from business formation to litigation to dissolution. If you would like us to evaluate your situation, please call (713) 352-0847 or to contact us online for more information today.