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Preparing for what comes after a breach of contract

Posted on in Contract Disputes

Contracts are a staple in the world of business. They are entered into by individual parties, companies, subcontractors, real estate developers, and really anyone trying to see a project to its completion or attempting to garner a positive and fruitful professional partnership. However, not every contract is fulfilled in the way the parties intend it to be. Sometimes one party fails to hold up their end of the bargain, or the contract is breached in some other way that ruins the original intent of the deal.

A contract can be breached in myriad ways, so it is difficult to outline exactly what an individual or business could do when they are involved with a breach of contract. But there are a few things to expect and prepare for in all cases.

The first is that there will likely be language in that contract that dictates how a breach of contract is handled. You could abide by this contract's provisions and utilize those directions to solve your breach of contract. However, if that is unsatisfactory, you could take legal action. A lawsuit could yield compensation in the form of damages that one company requests as a result of the breach of contract.

Damages aren't the only thing that can constitute a legal "remedy" with a breach of contract though. Specific performance, where the breaching party's court-ordered performance of duty under the contract, can be enforced. Cancellation of the deal and restitution in light of the contract breach is also possible.

Source : FindLaw, " 'Breach of Contract' and Lawsuits," Accessed March 2, 2016

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