You dedicated your life to building your Colorado business on a solid foundation. When a dispute arises with a supplier over a contract issue, your business may take a hard hit.
Professional contracts address every facet of the agreement between parties. One of the most critical is how a breach occurs and resolves. The legal team at Overturf McGath & Hull, P.C. takes these matters seriously and is educating the public on all facets of contracts. Save yourself some time by brushing up on some of the basics involving your rights and remedies under the agreement.
A breach is a broken promise
Breach is a legal term for a broken promise. It means the parties agreed on a term or condition, and one is going back on that agreement. The reasons for the backstep may vary: lack of funds, interest or time. At other times, a party may purposely break a provision to get out of performing the rest of the agreement. In every situation, however, there are actions the innocent party may take to recoup any losses suffered.
Remedies are ways to fix the breach
If your contract contains a breach section, it should offer a resolution. There are times when the innocent party may force the other to perform. In this instance, the innocent party may not have time to go out and workaround to get someone else to perform the agreement. The breaching party may have to either pay a penalty or perform according to the contract. If there is an exit strategy, however, the innocent party needs to prepare for this and put a backup plan in place. Litigation is always a possibility when dealing with contract breaches.
It might be difficult to contemplate that a breach may occur within your business relationships, but you should. Visit our website here to learn more helpful tips on business matters.