Crafting Remedies for Breach of ContractAugust 25, 2011
Nobody wants to enter a relationship expecting it to fail. It’s easier to believe both parties will perform in good faith, as expected and with integrity. At the exciting start of a relationship, the last thing on anyone’s mind is what would happen if someone failed to live up to their part of the bargain. Such thoughts are unpleasant and can set up an air of mistrust. But the future must always be considered.
As in romantic relationships, business relationships aren’t predestined to work out. And where a prenuptial agreement protects the parties in a marriage, a contract protects the parties in a business arrangement. Part of that contract should outline remedies in the face of a contract breach.
Although the law is clear on what constitutes a breach of contract, using the contract to specify remedies for breaches has several benefits.
- First, the remedies will be clearly outlined and not left to a court’s interpretation.
- Second, the remedies will be specific to the goods or services offered.
- Third, the remedies may offer more flexibility than the legal standard.
For instance, if the contract defines a 30-day payment term, and payment is received at 45 days, it’s clear the contract has been breached, but this does not need to result in contract termination. Instead, under a remedy built into the contract, the payment recipient could impose a late fee and choose to continue the contract. Risk is also mitigated because the consequence of a breach is clear in advance. Should a breach occur, each party knows what the resulting damages will be, and the contract does not have to be delayed or terminated.
Even if the contract outlines specific remedies for breaches, contract termination may occur as a last resort. If this happens to you, you’ll want a skilled business litigation attorney on your side. As California trial lawyers, we at Hornberger & Brewer have litigated all types of business disputes in our decades of practice.
Our proven track record of effective representation, as well as our $20 million verdicts on several breach of contract cases, has cemented our reputation as some of the finest trial lawyers in Los Angeles and Orange Counties.
Our reputation is an asset to your case in all forums, including mediation and arbitration, and often leads to better settlement offers.
For more information about how the trial lawyers at Hornberger & Brewer can fight your business and commercial litigation battles, contact us for a consultation.
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- $1.5 Million Judgment Breach of contract and defamation action resulting in default judgment collected
- $1.3 Million verdict Employment and breach of contract case
- $1.2 Million verdict Misappropriation of trade secrets and indemnity claim
- $1.0 Million settlement Employment termination and breach of contract case
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