When you execute a contract with another party, you should be able to trust that they will follow through with what they promised your company. Unfortunately, some businesses and contract professionals will breach their agreements with your company, leaving you in an awkward position or forcing you to absorb financial losses that aren’t really your fault.
Sometimes, you may determine that pursuing a breach of contract claim against the other party would be more work than it is worth, but other times, taking legal action is a necessary and smart choice. When should you strongly consider bringing a claim in court over a contract dispute?
If there are major defects
Did you hire a company to remodel a structure, but the end product is unsafe or not in compliance with the building code? Defects in the services provided can be a viable reason to take the other party to court.
When you experience major delays
From delivery date delays that idle your entire production facility, to construction delays that push back the opening of new retail facilities by months, there can be scheduling issues that might cost your company tens of thousands of dollars.
When the other company fails to appropriately communicate with you about the issue and when they do not make an effort to compensate you for the inconvenience, you may need to consider going to court over this significant breach of the terms of your contract.
If they fail to fully complete the project
Especially with complex projects, like construction work, the possibility is there for a company or contractor to do some of the work, but to not fully perform their job as outlined in the contract.
When the services provided do not adhere to the expectations explained in the contract, you may be in an actionable position.
Non-payment of your invoices
When a customer or client fails to pay you, they can do real damage to your company. The bigger the project and the more that you have invested in materials or labor costs so far, the more non-payments could hurt your finances.
After you review your contract and verify that the other party has not paid you as they should have, deviated from the appropriate schedule, not fully performed their responsibilities or done a poor job resulting in defects, you will want to notify them of the issue and begin gathering evidence to go to court. Recognizing when contract disputes become actionable situations can help you enforce your contracts and protect your business. It is important to have your attorney draft your contracts so you can recover as much as possible.