Should You Take Your Contract Dispute To Court?

When you enter a contract with a provider, a client, or another business setting forth the terms of your business deal, you expect the other party to abide by the terms of the contract. If the other party fails to adhere to the terms of your business agreement, it can cost you time and money and can be infuriating, especially if you have performed your obligations under the contract or the breach of contract costs you money or future business. Business owners harmed by another party’s breach of contract often want to immediately march into court and file a lawsuit against the breaching party. However, this is often not the best or most advantageous course of action and often may even constituted a breach of contract by you. If you believe that a contract has been breached, consider promptly consulting with a qualified attorney to evaluate the contract and assess rights and legal options.should-you-take-your-contract-dispute-to-court-300x200

Have Your Attorney Negotiate with the Other Party

Often, a party may not realize that they have violated or are not in compliance with the terms of a contract and may not understand the potential liability they face for having breached or being in non-compliance with the agreement. Many times these issues can be remedied, putting the aggrieved party in a much stronger legal and negotiating position. It may then make sense for your attorney to reach out to the other party to attempt to resolve the dispute prior to commencing a lawsuit.

Examine the Terms of the Contract

Many well-drafted contracts will contain provisions addressing disputes.  These should be evaluated.  Some contracts require certain notices be provided to the other party.  Some contracts require that the parties engage in negotiations or mediation prior to filing a lawsuit to attempt to resolve the dispute. Many contracts contain arbitration provision.  Failing to understand and comply with these provisions can have grave consequences.  Whenever you believe the other party has breached its agreement with you, these and all other provisions of the agreement must be carefully evaluated before embarking on a particular course of action.

Consider Whether You Will be Able to Collect

Even if the other party has breached its agreement with you, does an adequate remedy exist? Does the other party have the means to satisfy some or all of a potential judgment? Perhaps the party breached the contract due to insolvency or other financial issues. Does the other party have other creditors? If so, it is critical to consider your likely priority relative to other creditors.  If priority is an issue, is your claim one for which a pre-judgment writ of attachment may issue to secure a potential judgment?  If an individual or business does not have any assets or property, there may well be little to no benefit to taking the time, energy, and money to obtain a judgment.

Discuss Your Options with a San Jose Business Attorney Today

Whether or not litigation is right for you, the skilled business law attorneys at Structure Law Group, LLP can assist you. We can seek alternative resolutions methods or can represent you in business litigation if needed. Please call us today at 408-441-7500 to find out more about our legal services for your business.