Business Problems

How to Handle a Claim of Breach of Contract against Your Business

Many businesses today face claims of having breached a contract at some point. That contract could be with a vendor, client or employee. You need to act quickly and decisively in order to protect your company. Here is how to handle a breach of contract claim against your business.

Determine If a Contract Was Breached

The first step is to determine if a contract between you and another party was actually breached. Start by establishing that a valid contract existed between all of the parties involved. You must then get the details of the claim. Check that what the person was expecting was actually outlined in the contract. The claim is not valid if there was no contract, common understanding of the terms or breach of the terms.

Try To Settle Things Privately

You want to now attempt to settle things privately with the other people involved in the binding contract. This should be done informally through a meeting or phone call. Attempt to reach an amicable resolution that makes everyone happy. This might involve increasing the services to be delivered. It could also involve invalidating the contract without penalties. You should always try to resolve the situation privately in order to avoid legal complications later or bad publicity.

Enter Into Online Arbitration

If a private settlement cannot be reached, then enter into online arbitration. Online business arbitration means all of the parties involved agree to allow an impartial third-party to judge what the best resolution is for the breach of contract. The process can be done exclusively online. It takes very little time and money to complete. The outcome will always be fair based on the law and the specific circumstances of the claim. The experienced arbiter might even decide that the contract was not really breached in the end.

Look Into Mediation

Some people might not like the idea of an arbiter deciding the outcome of a case. This is when you should look into mediation instead. Mediation involves sitting down with an impartial person to work out the claim. That mediator will not decide the case. The individual will just oversee the meetings to ensure progress is being made every time. A mediator can help everyone to come to an agreement through careful negotiations and reasoned arguments.

Go To Court

If the party accusing your business of breach of contract will not negotiate or go through arbitration, then legal proceedings are most likely the last resort. You might need to file a claim yourself to resolve the situation. Alternately, the opposing parties might already have filed a claim. You must contact experienced attorneys if this happens. Breach of contract cases can be very complicated. Your best chance of winning any litigation is representation by a knowledgeable lawyer.

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