How To Properly Define a Breach (A.K.A. a Broken Contractual promise) In Your Contract To Protect Your Interest
Entering into a business relationship whether, with one of your acquaintances or a completely unknown entrepreneur or business, you must be careful about what terms you lay out for the venture.
The best and the legally acceptable way is, to create a contact or an agreement, whereby each of the involved parties agrees to everything written within it.
As good and efficient that may sound, often one of the parties goes beyond the line and does something that induces a breach in the contract.
Now, this is something intense and if not dealt with, could cause tremendous harm.
To help you understand the same, this article will shed light on what a breach of contract is and how can you add a clause that specifies how to deal with such situations.
Breach Of Contract: Defining The Term
As per wikipedia, "Breach of contract is a legal cause of action and a type of civil wrong, in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party's performance."
In simple terms, when one of the parties fails to act upon their agreed-on terms or violates any of the clauses as mentioned in the agreement, the contract is breached or the promises in the contract are not kept.
These matters are often resolved outside the court, yet a few prefer to deal with it in court.
When Does A Contract Get Breached?
A breach of contract, as mentioned above, could be anything as trivial as not clearing payments on time to something more intense like not completing the order on time.
To be precise, a breach occurs when:
One of the parties refuses to act as mentioned in the agreement. Let's say, for example, the party is expected to run through a company's infrastructure and generate an assessment report on weaknesses. If it refuses to do the job, it leads to a breach of the contract.
Consider a situation when the job is done, say the assessment is created, but the report appears to be of subpar quality .
If a company fails to deliver the goods and services this can be a breach . If the contract lists out the date for completion, it is a must for both of the parties to stand by the same.
Failure to pay for services either on time or not paying at all causes a breach of contract. .
Lastly, when a party fails to deliver the product or service, it accounts for a breach and the situation must be dealt with effectively.
How To Deal With A Breach Of Contract?
Knowing what all can cause a breach of contract; the next thing to do is finding ways to deal with it.
Orally: All of the involved parties can sit and enter into a conversation where they discuss what has happened and then find a solution.
Written: On the flip side, most of the top-tier organizations prefer having a clause added within their agreement so when the time comes, they would know how to deal with the situation without taking the matter to the court.
Drafting The Contract:
It is important to have all of the reasons listed in the contract for that to be functional, irrespective of the cause that can be considered a breach.
Also, make sure that the clause added doesn't contradict or get contradicted by any other clause in the agreement. Confirm with the signing parties that they have read the terms and clause before penning their signature.
Once confirmed, go ahead, get the approval and you are now secured to deal with unexpected breaches.
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Yoel Molina, Esq. (AKA “Mo”)
Yoel “Mo” Molina, I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters..
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"My name is Anastasia Yecke Gude and I am the owner of Healing Hands Therapeutic Massage LLC. In the process of my company’s growth and expansion, I suddenly found myself a few weeks ago in need of a 1099 contractor agreement, and I needed it ASAP. As in, the very next day! I contacted the Law Office of Yoel Molina and his assistant put me in touch with Mo. I sent him what I had drafted up and he replied within a few hours with suggested revisions and clarifications, as well as a few insights I had not even considered. I was thoroughly impressed by the quality of work he provided, especially considering the time crunch I put him in (sorry, Mo!). I definitely recommend his services to anyone in need of a good contract attorney, and I will be calling him again for future work…hopefully in less of a rush next time!"