Tools & Tips
9 Factors to consider with a breach of contract
1. Review the contract: Thoroughly examine the terms and conditions of the contract to ensure you have a clear understanding of the obligations and responsibilities of each party. Identify the specific clause or provision that has been breached.
2. Document the breach: Gather evidence and document the breach in detail. This includes collecting relevant correspondence, invoices, receipts, or any other pertinent records that demonstrate the breach and its impact on your business.
3. Communicate with the other party: Notify the other party about the breach in writing. Clearly state the specific breach that has occurred and the consequences it has caused. Specify a deadline for remedying the breach or addressing the issue.
4. Assess damages: Evaluate the damages or losses incurred as a result of the breach. This can include direct financial losses, additional expenses, or any other negative impacts on your business. Document and calculate these damages as accurately as possible.
5. Consider negotiation or mediation: Before resorting to legal action, explore the possibility of negotiating a resolution or engaging in mediation. This approach can help you reach a mutually agreeable solution without the need for costly and time-consuming litigation.
6. Consult legal counsel: If the breach cannot be resolved through negotiation or mediation, seek legal advice from a qualified attorney who specializes in contract law. They can guide you on the best course of action and help protect your rights and interests.
7. Follow legal procedures: If legal action is necessary, file a lawsuit in the appropriate jurisdiction and follow the prescribed legal procedures. Ensure you comply with all applicable deadlines, documentation requirements, and court rules.
8. Mitigate damages: Take reasonable steps to mitigate or minimize the damages caused by the breach. This can involve finding alternative suppliers or taking actions to limit further financial or operational harm.
Preserve evidence: Maintain a record of all communications, documents, and actions related to the breach. This evidence will be crucial in supporting your case and proving the extent of the breach and resulting damages.
9. Seek compensation or remedies: In your legal proceedings, pursue appropriate compensation or remedies for the breach. This may include seeking financial compensation for losses incurred, specific performance of the contract, or termination of the agreement.
Want to learn more? Attend our Procurement Contract Management and SLA Training Course.