What Happens when A Contract Is Breached?
Contracts in business are set out for a reason. They are meant to be adhered to, but they are in place as a form of protection no matter what happens.
In reality, contract breaches often happen, but as a business person you should take action by looking into the nature of the breach immediately.
The types of contract breaches
Contract breaches come in two main types. They are usually categorized as either material breaches or immaterial breaches. A material breach is one that has significant consequences. An immaterial breach is one that does not have any real impact to the course of events. These are treated quite different under the law.
The first steps to take
If you have breached a contract or your contract has been breached by another, then it is important to take action immediately. You should first try to enforce the terms of the contract, and try to resolve any of the negative effects that the breach caused. If this fails, and after attempts to communicate through mediation have failed, you should consider taking legal action. This can be done by filing a lawsuit. The small claims court might be the best place to turn if the amount of money at stake is between $3,000 and $7,500. If the amount at stake is above $7,500, then you will need to go to a normal court.
It is important that you take action quickly when a contract has been breached so that the case is a simple one and so that you can resolve the conflict efficiently.