Almost any type of business transaction can benefit from having a contract in place. You may have signed many agreements over the course of your business, and in most cases, the relationships worked out as intended, and the contracts came to a close. However, you may have recently found yourself involved in a business relationship that is causing your company problems.
Unfortunately, despite signing a legally binding document, some parties may not abide by the terms of the agreement. When one or both parties do not follow those terms, a breach of contract has likely occurred. You may feel that the other company involved in your current business arrangement has breached the terms of your agreement, and you may be considering litigation for the first time.
Go over the contract
You certainly do not want to move forward with any frivolous lawsuit, and when you first noticed matters going awry with your current business deal, you may have attempted to contact the other party about the issues in hopes of resolving them. However, the others involved did not fix the problems. Despite other attempts at resolution, the issues have persisted, and now, you feel that litigation is your best option for protecting your company’s interests.
Lawsuits are unfortunately common in the business world, and you may have valid reasons to pursue one yourself. Still, to ensure that you do have such cause, you may want to go over the terms of the agreement:
- Did the contract stipulate the duties and responsibilities of each party and detail any prohibited activities associated with the business relationship? If so, the other party may have breached the contract by participating in prohibited activities or by not performing agreed-upon duties appropriately.
- Did the contract have terms relating to payment? If so, the other party may have violated the agreement if the entity did not provide payment on time or correct payment as stipulated in the contract.
- Did the contract have confidentiality terms? If so, you may have cause to file suit against the other party if the person or company did not keep proprietary information confidential.
- Did the contract include dates stating when certain milestones relating to the arrangement should be met or when the overall project should come to completion? If so, the other party may have violated the terms if the entity did not complete certain tasks by the agreed-upon dates.
These are important terms to have in most business contracts, and you may have included other details specific to the arrangement in which your company was involved.
Consider your options
As mentioned, you may have tried to contact the other party to discuss the issues to no avail. You may be considering your next steps, and if litigation is on your mind, you may want to contact an experienced Florida business law attorney who can assess your predicament and explain your available options.