The goal when negotiating and drafting a contract is often to ensure that a business arrangement meets a company’s needs. Provided that everyone committing to the contract fulfills their obligations, the contract can be a beneficial and even protective document.
Unfortunately, not everyone bound by a contract consistently and fully upholds their obligations. Breach of contract scenarios can derail company operations, increase expenses and impact other contracts.
Filing a breach of contract lawsuit can sometimes help resolve disputes related to a business agreement. What solutions do the civil courts offer?
Judges have many ways of helping disputes
The decision to file a lawsuit to resolve a contract issue can help companies limit or recoup their losses. There are numerous solutions that judges can provide during breach of contract litigation. Typically, the process begins with a review of the contract and what occurred to violate the terms of the agreement.
If they affirm that the contract is valid and that a violation did occur, they can hold the other party accountable by enforcing any penalty clauses integrated into the original agreement. They can award damages to the plaintiff when there is evidence that the contract breach affected the company’s finances.
They can invalidate the contract by authorizing contract rescission. They can even issue injunctions compelling one party to perform specific acts or forbidding them from continuing to engage in certain conduct.
Plaintiffs pursuing breach of contract litigation typically have the option of requesting the remedy that works best given their circumstances. Reviewing a contract and the consequences of a breach with a skilled legal team can help business leaders respond effectively to contract disputes.