7 Reasons to Avoid Breach of Contract
No one intends to breach a contract agreement, but there are times it is out of your control. Whether you need to back out of an agreement or you simply feel the other party is not fulfilling their end of the deal, a breach could be devastating for your company.
Any time you need to break the agreement of a contract you should consult an attorney as well as consider these top reasons to avoid a contract breach.
Reasons to Not Breach a Contract
You risk your business reputation : People do business with you because they trust you. If you breach your contract, then you could damage your reputation, and other companies may be less likely to work with you in the future.
You risk the relationship with that company : Even if you are unhappy with the agreement, there are better ways to resolve that then breaching your contract. Breaching almost always guarantees you sever all future relationships with that other party.
You will spend a lot of time away from your business : After you breach a contract and the other party enlists the help of an attorney, you will find that you spend more time away from your company than actually contributing toward it.
You will spend a lot in legal fees : From filing to your attorney’s retainer, you are going to spend a significant amount of money justifying the breach of contract.
The court may order you to fulfill the contract terms anyway : Even if you want to breach the contract, if you breach without cause, then the courts may order you to fulfill your obligations within that contract anyway. This means you will not only have to do what you agreed, but you will pay legal fees and court fines on top of it all.
You could be held in contempt of court : If you ignore the court’s demands to fulfill the contract, then you could be held in contempt, which means you could be fined or even imprisoned.
Damages are likely to be rewarded to the other party : Because you breached the contract, the courts may reward compensatory and consequential damages to the other party.
Need to Breach? Contact an Attorney First
While you may have reasons for breaching a contract, remember that the contract you signed is legally binding; therefore, you should consult Business Law Attorneys in Florida before you breach your contract.
The Law Office of Kelley, Fulton & Kaplan can assess your situation and possibly help you alter the agreement without a breach. We can help you renegotiate terms, and in the event you do have to breach, represent your business. Call us today for a no obligation consultation at 561-264-6850.