When your business enters into a contract with another party to provide services or goods for your company, the other party’s failure to perform can result in frustration, monetary loss, or even damage to your business’s reputation. If you are dealing with a breach of contract situation like this, you are likely wondering about your options for enforcing the terms of the contract. What can your business do to require the other party to uphold their end of the agreement? Do you have to file a lawsuit, or do you have other options? Our Santa Fe business litigation lawyers can help you. We can discuss the options that may be available to you for enforcing the contract, from informal negotiations to litigation.
As you explore your options for enforcing the contract, you can consider the following possibilities.
Informal Negotiations
Whether informal negotiations with the non-performing party are appropriate will depend upon the circumstances. For example, how significant is the other party’s breach, and would it be possible for the other party to fulfill the agreement they made? In minor breaches, according to the University of New Mexico, your business might not be significantly harmed. As such, there may not be a need to take immediate legal action where informal negotiations could work. Through negotiations, your business litigation lawyer might be able to negotiate compensation resulting from the breach, such as money lost for the delay caused by the breaching party.
Mediation
If informal negotiations cannot resolve the breach of contract, or if you do not want to consider informal negotiations, you may be able to resolve the dispute through a form of alternative dispute resolution (ADR). Mediation is one form of ADR, and it involves you (the non-breaching party) communicating with the breaching party about the breach of contract with facilitation from a neutral third party known as a mediator. Mediation might save your business time and money associated with litigation, and it may be possible to reach a resolution in which the breaching party agrees to perform and to provide your business with compensation for losses associated with the breach of contract.
Arbitration
Your contract may require that you arbitrate the dispute, or you might choose arbitration. Arbitration is another form of ADR, but it is more adversarial than mediation. In arbitration, both parties present their sides of the breach of contract case to an arbitrator who makes a ruling.
File a Lawsuit Against the Breaching Party
Sometimes it may be necessary to turn to litigation. If the breach of contract cannot be effectively resolved through other means, or if your business has been irreparably harmed by a material breach of contract, you may need to file a lawsuit to enforce the contract and to seek a remedy for the losses your business has experienced.
Seek Advice from a Business Litigation Lawyer in Santa Fe
Our Santa Fe business litigation attorneys can speak with you today about options for enforcing a business contract. We know how devastating a breach of contract can be, and our firm is here to provide you with a range of options for resolution. Contact Slate Stern Law today to learn more about how we can assist you.