Nilson Brand Law Attorney group shot

Attorneys Who Give It To You Straight

Photo of the attorneys at Nilson Brand Law.

How the North Dakota civil courts help to enforce business contracts

On Behalf of | Oct 26, 2023 | Business Law

Many businesses in North Dakota execute a variety of different contracts. From employment contracts that clarify how they will compensate and discipline employees to contracts with service providers that help them outsource certain work responsibilities, those contracts help to make companies profitable and their operations predictable.

Most businesses that negotiate contracts with outside parties thoroughly intend to fulfill their part of the agreement in question. However, there are always some businesses and individuals who sign agreements with no intention of following through on their promises to others. When this happens, the North Dakota civil courts can potentially help to enforce an existing contract.

They can enforce fees and help collect damages

During a breach of contract lawsuit, an organization harmed by the contractual non-compliance of another party can seek compensation in the form of both provable damages and any penalties or fees integrated into the initial contract. The courts can enforce clauses that impose certain costs for contractual violations. They can also hold one company responsible for the provable financial impact that a breach of contract has had on another. Many businesses intentionally include special causes that will allow them to impose financial responsibility on a party in breach of the agreement if they have to take the matter to court.

They can order specific performance

Not every organization’s contracts have late payment penalties or other clauses that allow for financial compensation after a contract violation. There may also not be any direct provable losses related to the breach of contract, which can put the plaintiff in a difficult position. Instead of seeking monetary compensation, they might choose to ask a judge to order specific performance.

Specific performance is the legal term for a judge requiring one party to perform certain work or provide services for the other party in a lawsuit. An order of specific performance might force the supplier to finally make good on delivering certain merchandise or supplies. It could also compel a service provider to finish a project or to redo work that was not to the standard outlined in the initial contract. Orders of specific performance can essentially help enforce the original agreement with the additional authority of the courts backing the contract.

Businesses that are worried about how the default of another party might affect their operations can potentially take the matter to civil court and seek an appropriate solution given the situation. Understanding the options available when litigating a breach of contract matter can help organizations in North Dakota obtain the most beneficial outcome to what has undoubtedly been a very frustrating situation.