Running a business is hard enough without dealing with business litigation and breaches of contracts. You have to deal with customer service, customer acquisitions, supply chain issues, cashflow challenges, etc. And, in today’s economic climate, it seems like every day, there is a new challenge. However, one of the most common ways you can avoid business litigation is by making better contracts and enforcing them.
Understanding breaches first
First, let us understand a breach of contract. There are material and non-material breaches of contract. A non-material breach of contract is any breach. A material breach is where a material term is breached, like something that was to be delivered was not delivered. That defeats the entire point of the contract.
For example, if a contract says that a delivery is to occur at 3:00pm, and it occurs at 3:02pm, a non-material breach occurred. That 2-minute delay would only be a material delay if the contract specified that the 3:00pm delivery time was a material term.
Making better contracts
As you can probably tell from that brief example, a key to avoiding confusion and breaches is making better contracts. That means being explicit. Every important term in the contract should be spelled out with as much specificity as possible.
There should also be dispute resolution procedures spelled out, like arbitration, choice of law provision, etc. Make sure you have your Albany, New York, attorney draft all your contracts to ensure they are legally enforceable and as complete as possible.
Enforce your contracts
Remember, you do not have to wait for the breach to enforce your contract. If the other party to the contract has stated that they are not going to do something, you can take them to court immediately. Do not wait. In addition, do what you can to mitigate your damages now, and call your Albany, New York, attorney as soon as you know the breach is going to happen.