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3 ways a judge can resolve a serious breach of contract issue

On Behalf of | Oct 4, 2022 | Business Law |

As a business owner or executive, you depend on your service providers and vendors to follow through with their contractual obligations to your company. Without the agreed-upon delivery of production materials or the right IT support, your company could struggle to fulfill its obligations to others.

Your contracts help make your agreement with another business more enforceable. A breach of contract can affect your company’s operations and affect your budget.

If the other party won’t willingly resolve the issue, then you may need to take them to court to hold them accountable. You can make a claim related to their failure to uphold your agreement and the impact that failure has had on your business.

Based on the remedy you seek in your lawsuit, a judge may potentially resolve the contract dispute in a number of different ways. Here are three common resolutions:

The judge can award you damages

Can you show that you lost a contract or incurred a penalty because of what the other party’s breach did to your company’s operations? If so, you may potentially be able to request damages.

A judge can award you financial compensation for the provable impact of the other party’s failure during a breach of contract lawsuit. When there were obvious and expensive consequences for your company because of their breach of contract, you can hold them accountable in civil court.

The judge can order specific performance

Sometimes, what you truly need is for the company that started building your new website to finish the project or a supplier to deliver goods that you paid for months ago. A judge has the authority to order the other party to perform work as they should have according to your contract or to follow through with the delivery of materials or specific purchased goods.

The judge can compel a refund

Sometimes, the other party can no longer deliver the goods you ordered, or you no longer want the services they could have provided for your company. In scenarios where you have already paid, a breach of contract lawsuit could help you secure a refund.

In some cases, simply filing the lawsuit will be enough to motivate the other party to make good on their previous contractual promises. Other times you will have to make your case in front of a judge. Pursuing a civil claim can help you resolve a business dispute related to a breach of contract that has affected your company’s operations or finances.

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