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Litigation Blog.
The seasoned lawyers and litigators at The Rubinstein Law Firm are here to share their insights with you.

What should you do about a contract breach?

A contract breach may prevent you from getting the most out of a relationship and could even compromise your productivity and success. Knowing if to react and how to react can help you maintain control over the situation.

Developing a response strategy prior to taking action can increase your chances of reaching a solution without making costly mistakes along the way.

Addressing the breach

Your emotions may cloud your ability to respond rationally at first. Allowing time for yourself to understand what has happened and how it could potentially affect you may enable you to address the situation with a realistic perspective. Before taking the most extreme approach of terminating the contract, you may consider allowing the other party time to address the discrepancies.

If you choose to provide a second chance, you will want to think carefully about your contingencies for the relationship going forward. Clearly define your expectations and disclose the consequences for another breach. If the other party claims misunderstanding as the reason for the breach, consider providing additional training or information to clarify the purpose and function of the agreement.

Terminating the contract

When a breach creates severe repercussions, it may only seem fit to terminate the contract entirely. Before going through with this decision, you will want to make sure that you are within your legal right to terminate the agreement. Even as you begin the process of termination, make sure you do it the right way.

Reducing the risks of contract disputes is something you can do early on. INC. suggests verifying that those signing your contract have the proper authority to legally assume that duty. Verifying everyone’s understanding prior to finalizing a contract can greatly reduce the chances of a dispute from happening.