As a California business owner, contracts are an important part of your work on a daily basis. From the goods and services that you buy to your own offerings in the market, much of your business is defined by contracts. This is one reason why a breach of contract can be such a serious concern. A breach of contract takes place when one of the parties to a binding agreement violates any of the terms or conditions of the contract.
Dealing with a breach of contract
Contracts are binding, and they do not need to be written in order to hold legal weight. A breach can take place for either a written or an oral contract, and the matter can be taken to court. In many cases, the parties may be able to resolve the matter before actually entering the courtroom, either among themselves, by negotiating a settlement, or by a revision to the contract. Some types of breaches may have a resolution written in the contract itself, such as requiring a late payment fee or reductions in compensation for delays. Dealing with business litigation is part of this process that may be helped by hiring an attorney.
Types of breaches of contract
Not all contract breaches are created equal, however. Some breaches are minor, such as a short delay in delivery, whereas other breaches are material, meaning that the outcome is entirely different than the one that was expected in the contract. You do not necessarily need to wait for the contract period to expire in order to deal with a breach; an anticipatory breach takes place when one of the parties says he or she will not fulfill that end. An actual breach occurs when the party refuses to follow through in practice.
Dealing with contracts and potential breaches can be a major source of concern for many businesses. By consulting with a business law attorney, you might obtain the support and advice that can be critical to writing contracts that hold up in court or negotiating issues that arise along the way.