Contracts allow two parties planning to do business to spell out their obligations. The terms and conditions in these agreements are what contracted parties have agreed to resolve their differences should a dispute arise.
As a business owner, you should always try to amicably resolve your differences with your customer. You may have to pursue litigation if you’re not successful in reaching an out-of-court settlement. There are a few different remedies that you may be able to pursue if someone breaches their contract with your company.
When to ask the judge to allow you to offer specific performance
As a business owner, it’s likely that you regularly request the services of others. You might purchase building materials from a vendor to carry out a special construction project. Another example is that you may prepay a flooring company to come in and apply a certain finish to your floors.
It may make sense for you to request that the judge order specific performance in the scenarios above. If you do, the contracted party won’t just be obligated to carry out the project per the agreement they signed, but there will be a court order requiring them to do so.
When to request a nullification of your contract
Contracts require both parties to carry out certain responsibilities. Many businesses may elect to ask the court to nullify to get out of carrying out obligations outlined in the agreement.
Requesting financial damages for a contract breach
Businesses often forecast how much revenue they may make on the different contracts they’ve entered into. Companies can incur significant, crippling financial losses that can potentially cause their demise if enough customers breach the terms of their contracts. As a business owner, you may want to request that the court allow you to recoup your actual financial losses attributable to the breach.
Which breach of contract remedy is best for you?
There are pros and cons associated with choosing one of the above-referenced remedies over another. You’ll want to take time to learn what those plusses and minuses are before determining which option you’re going to pursue.