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How To Handle Breach Of Contract Allegations

As a hard-working small business person, your primary concern is the day-to-day operations of your enterprise. Staffing, sales, supply chain and customer service occupy your daily concerns. What happens if you’re accused of breach of contract?

It’s a challenge to keep this type of legal allegation from dominating your time, tarnishing your reputation and demanding extensive finances. Here’s what breach of contract means and how to handle this type of allegation.

Breach Of Contract

A breach of contract occurs when one or more terms of a contract do not get fulfilled in the agreed upon time and manner. The breach of contract designation can be used for almost any kind of business dispute. Failure to provide services or to make payment for services rendered per contract stipulations are two reasons. Violation of a non-disclosure agreement is also a common contract breach reason.

Requirements of Proof

The accuser needs to prove a breach of contract happened, as well as prove that an agreement exists and is valid. Also, that a term or terms of the contract did not get completed, that the breach cost the claimant money, and that you or your business was responsible for the broken contract.

If an accuser can prove a breach of contract, you may have to pay damages and attorney’s fees. Other than suing in court, a resolution of the breach can come in the form of a settlement, cancellation or revision of the agreement.

Get Legal Counsel

Review the contract in question and consult an attorney regarding the viability of the allegations. Also, it always pays to proactively consult an attorney when you’re in the process of forming business contracts.

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