What to Do When There is a Breach of Contract

Breach of Contract? You Need to Take These Three Steps in a Lawsuit

Businesses are set up and maintained through a series of contracts. Whether the contract is to obtain a permit, open a storefront, or even sell the merchandise of a vendor, it is vital for every business to use contracts.

But how do we handle a contract that has been broken by one business owner to another? This breach of contract can be extremely damaging financially.

To show that a party who is in a contract with you has breached the agreement, you need to take a couple of steps to prove that. This can be a challenge and you’ll need factual evidence to make your case.

1. Show There Was a Valid Contract

The contract must have legal dates and information that can clearly point to a breach. The specific requirements for breach of contract will vary depending on state laws, as well as the nature of the contract’s subject matter. Generally speaking, it’s easier to prove a breach of contract for a written contract rather than an oral contract.

2. Show How the Contract Has Been Breached

Explain the breach and how the issue isn’t just over a minor error.

3. Prove Your Losses

Calculate how much your losses have affected your business. Maybe the breach affected your bottom line but it also had a driving effect on your cash flow, how you hired staff, and your capacity to produce products. All of these elements are brought into your business dispute lawsuit to show how the other party wronged you and breached their contract.

When to Hire a Lawyer

Lawsuits involving breach of contract include many different elements including proof, remedies, and possible defenses. You may wish to hire a contracts lawyer to get more information or guidance on filing a lawsuit. Your lawyer can help you go over your contract, the facts of your claim and help you through the litigation process.

Spangenberg Shibley & Liber LLP is here to assist businesses in Cleveland and the surrounding areas with any breach of contract litigation. Call us for a free and confidential case evaluation: (216) 600-0114

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