Companies sign contracts with vendors and service providers for a range of different reasons. Typically, organizations expect that the other party to a contract will fulfill the agreement in a timely manner. Unfortunately, contract fulfillment does not always occur quickly or appropriately. Businesses and contractors may delay following through with a project or delivering certain materials. Such omissions, whether intentional or unplanned, can result in major financial implications for a business.
Will the civil courts help a company coping with the aftermath of a material breach of contract to enforce the original agreement?
Contract enforcement is one legal solution
A material breach of contract can lead to production delays, unintentional contract violations and a host of expenses for a business. When there are losses directly connected to a contract breach, the party that has thus far appropriately upheld the contract might seek support from the civil courts.
Specific performance is one of the potential solutions in a breach of contract lawsuit. A judge can order one party to complete their obligations under the contract or perform certain other actions that would be necessary to remedy a prior breach. Judges also have the authority to end contractual obligations or award one party damages when there are verifiable financial consequences for a breach of contract issue.
The nature of the contract, the relationship between the parties and other considerations will influence whether seeking specific performance is an appropriate solution for an ongoing contract dispute. Reviewing the original contract and the impact of the breach with an attorney could help a business owner or executive ask for the most appropriate solution to the issue in court.