The Top 10 Reasons to Avoid Breaching a Contract
Breaching a contract is when a party involved in a legal contract with others fails to uphold their role as outlined in the contract. There are many nuances involved in determining what exactly constitutes breaching a contract and many solutions to such a decision. California business law attorneys can help you if your business is in danger of breaching a contract or such an event has occurred against a contract you already hold.
Reasons to Avoid Breaching a Contract
The following are 10 reasons why breaching a contract can be a very damaging event for your business.
#10 – Reputation. Once you’ve breached a contract, that’s a black mark on your company’s permanent record. Word does get around that you’ve been unable to fulfill your end of the bargain in a contract.
#9 – Relationships. If you’ve breached a contract with another business or partner, you’ve put a strain on that future relationship. Multiple offenses may even get your business banned from some service providers.
#8 – Legal action. Breach of contract is easily grounds for a lawsuit.
#7 – Time. When you’ve breached a contract it takes time and effort spent away from your business to deal with the legal ramifications of your breach.
#6 – Money. Breaching a contract often results in unnecessarily spent legal fees that wouldn’t otherwise be required.
#5 – Performance. Depending on the nature of the contract, you may be ordered by the court to perform your obligations under the contract.
#4 – Contempt. You run the risk of disobeying court orders if you are assigned specific actions which you neglect to undertake.
#3 – Compensatory Damages. The court may force you to pay compensatory damages to the other parties involved to recover the money they lost as a result of the breach.
#2 – Punitive Damages. You may also have to pay punitive damages in excess of the losses reported by the other party for their inconvenience.
#1 – There’s Nothing To Gain. Breaching a contract ultimately results in lost time, effort, and money on your behalf. No matter what duties you are attempting to get out of in the contract, you almost always end up creating more hassle for yourself than had you just complied with the terms of the contract.
Hiring California Business Law Attorneys
Before entering or drafting a contract you should have it reviewed by California business law attorneys with experience in cases like yours. A skilled attorney can help review your contracts to avoid breaching a contract in your business deals. If your business suffers a breach of contract, your attorney can also help fight for your legal rights.
The California business law attorneys at the Adli Law Group P.C. have formed lasting relationships with businesses across Los Angeles County and around the globe. Contact us today for experienced help with protecting your contract terms – 213-290-4933.