Should You Take Your Contract Dispute to Court?
Entering into a contractual agreement with a business associate binds both of you to the terms that you’ve agreed upon. There are times when the other party will fall short of their contracted responsibilities, possibly costing you time and money. This can be especially frustrating if you have already upheld your end of the agreement. Of course, the natural reaction when a contract is breached is to seek redress in court. However, this is not always the best way to handle a breach of contract. The first step should be consulting an attorney to assess the contract and the breach and to advise the best course of action.
Negotiating Through An Attorney
The party in breach may not have intentionally violated the terms of the agreement, or perhaps do not understand the potential harm of their actions. Before bringing suit, the first step should be for your legal representative to reach out to the party in violation and attempt to resolve the dispute. It is always easier to negotiate a resolution outside of court.
Reviewing The Terms Of The Contract
If a contract is carefully drafted, it may contain a section addressing disputes which should be considered immediately. You may be required to send certain notices to the other party. Additionally, your contract may have an arbitration provision, requiring you to seek resolution through mediation or negotiations before going to court. Failure to abide by such provisions can have its own very serious consequences. So it is important to follow the course of action laid out in the contract in an effort to resolve any disputes.
Will You Be Able To Collect?
Even in cases when you know the contract has been violated at your cost, it is important to assess the possible ways to remedy the situation and if they are worth your resources. You must consider whether the other party has its own resources to repair the damage caused or if their breach was related to financial issues. The other party may have creditors who can be prioritized over you. If the other part has few assets, it may not be worth your time, effort, and money to pursue a resolution in court.