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What Happens After a Breach of Contract?

For any business owner, contracts are often the lifeblood of the company because it protects a number of important factors. Contracts are legally binding agreements between two parties and when someone breaks that agreement, it can lead to business litigation disputes.

A breach of contract is exactly that—someone breaking a contract by not holding up their end of the agreement. For instance, if an employee refuses to do a job in their contract, this could be considered a breach. Or when a company is prevented from finishing a project because of the customer’s actions.

Regardless of the cause of the breach of contract, it’s important to know what happens after the allegations and what legal matters can arise.

What Happens Next

If a contract is broken, there are a few different avenues that may be explored. First, one or both of the parties may try to enforce the contract. Another option is to attempt to recover damages should the breach cause financial harm.

In most cases, a trial or mediation are required to seek remedies for the breach of contract. The company or individual can try and hold the other party responsible for the breach and seek various remedies such as damages, cancellation and restitution, or specific performance.

Damages may come in the form of monetary compensation. These could be decided as compensatory, punitive, nominal, or liquidated damages, depending on the decision by the court or mediator. Specific performance can be court ordered and the party responsible for the breach may be required to complete certain actions.

If cancellation and restitution is the order, the contract may be cancelled completely and the non-breaching party may sue the other party. These are often complex matters that arise during breach of contract cases that must be handled carefully and with the help of skilled legal representation.

At Patterson, P.C., we have 25 years of experience in all matters involving business litigation. Our Houston breach of contract attorneys understand the complexities involved in not only showing that a contract was broken, but also that the breach led to loss and that the breaching party should be held responsible.

We know how important your business is to you and we take the steps necessary to help you protect it from start to finish. If you feel someone has breached their contract, our firm can help you understand what options you may have to move forward.

Contact our firm today.