While it is not a crime for someone to breach their contract, it is a matter worth going to court over – especially because you run the risk of facing financial losses. As a result, it can be frustrating if the terms you agreed on are not met.
There are many ways one can breach a contract. Examples include the breaching party abandoning their duty, handing in incomplete or unsatisfactory deliverables or failing to make specific payments before the specified deadline.
How do you resolve a breach of contract?
One of the most important factors that determines whether or not you can rectify the damage from a breach is good communication. Keep in close contact with the breaching party to determine which terms they did not meet, what their reasoning is and, if they are willing, what they can do to compensate you. To resolve a breach, you will often need to:
- Review the contract carefully and take note of its terms, obligations, deadlines and other noteworthy clauses. Single out which of these factors the other party is responsible for breaching.
- Gather evidence of the breach, which typically includes emails, photos, communication logs, performance records and other relevant documents.
- Inform the breaching party of your concerns regarding which requirements they failed to meet. Listen to their explanation, if possible.
- Take steps to mitigate the potential damage the breach might cause, typically by requesting a settlement or modifying the terms of the existing contract.
- Negotiate with the other party and attempt to remedy the breach. You can also accomplish this through alternative dispute resolution (ADR), such as mediation or arbitration.
If negotiation fails, you may be eligible to file a lawsuit. In Florida, the statute of limitations for breaches of written contracts is five years, whereas you have four years for verbal contracts. This deadline exists to promote the timely resolution of disputes, especially because it is easy to lose track of evidence the longer the situation goes unremedied.
What comes next?
If you plan on negotiating with the breaching party, you can opt to pursue ADR. Mediation and arbitration potentially take less time, money and effort than filing a lawsuit and going to court. Alternatively, you can reach a settlement to receive compensation for damages.
Many people also consult their attorneys when faced with breaches of contract, asking them for guidance on how to remedy the situation. There are many complex laws that may be difficult to understand without the help of a legal professional.