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Are Business Contractual Disagreements Resolved Only By Lawsuit?


In the ever-shifting world of business operations, expectations may change. Although parties to a contract may conduct thorough due diligence, even the most proactive approach is not an absolute safeguard against contractual disagreements. When those disagreements escalate into non-performance of contractual duties, it is important to consult with an experienced business litigation firm.

What Is Considered a Breach of Contract?

A breach of contract claim is essentially an allegation that one party has not fulfilled its obligations under a contract. There are many variations on this theme. For example, a party’s performance may have been untimely, partial, or a complete failure. The factual context determines the scope and nature of the liability.

A lawsuit is certainly one way to respond to a contractual breach. However, a lawsuit can also be costly and timely. Our business law firm understands that time is money. Accordingly, we approach business disagreements with a practical eye. There are opportunities for advocacy before and during the duration of a lawsuit.

Pre-Complaint Options for Resolution

Before filing an official complaint, we may exchange correspondence with a party or explore alternative dispute resolution methods, such as mediation. Depending on the underlying contract, an ADR method may even be required, such as a mandatory arbitration clause in an employment agreement. Since ADR methods are confidential, a party who does not want the publicity of a lawsuit may be inclined to resolve a dispute in this method. Another advantage is that ADR methods often allow parties under a contract to amend their ways and continue working together, if so desired.

Source: FindLaw, “Breach of Contract and Lawsuits,” copyright 2019, Thomson Reuters

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