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5 Ways to Avoid Breach of Contract Lawsuits at Your Company

By December 9, 2014 February 9th, 2024 No Comments

Respecting and honoring any contract you sign is a fundamental part of being in business with another person or organization. But what can you do when another party doesn’t live up to their end? Or what if you’re being accused of failing to honor a contract? Here are five ways to avoid dreaded breach of contract lawsuits:

  1. Contract Clarity. Ensuring that your contract is clear and uses precise language is a great way to avoid breach of contract lawsuits before they start. Expectations should be spelled out in explicit and uncomplicated language. If you’re not sure your contract meets all of your needs, consult an attorney who is experienced in contract law.
  1. Follow the Contract. Obviously, once the contract is in place you are obligated to uphold your end of it. Do the job as described in the time allotted and within the budget allowed. If you are unable to do this, the contract may have to be amended—but the other party is in no way required to do this. Never sign any contract you don’t think you can live up to.
  1. Legality of Contract. All parameters in the contract must exist in accordance with the law and cannot contain illegal requests or requirements, such as giving up legally mandated breaks, violating safety standards, or refusing to accommodate a disability. A contract for an illegal act cannot be enforced by the courts.
  1. Have a Reason. There are legally valid reasons why a contract might be breached, such as being prevented, or a lack of capacity. If you’re the target of a breach of contract lawsuit, an experienced attorney can help ensure that your side is heard in court.
  1. Research. It’s a good idea to research anyone you intend to enter into a contract with. Have they been accused of breach or fraud in the past? Have they been honest about their history, training, schooling, and skill? An attorney with experience in breach of contract lawsuits can help you proceed with confidence.

Contact a business lawyer at Espronceda Law about protecting yourself in breach of contract lawsuits, or for help in filing one of your own.