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Informally and formally addressing a breach of contract

Contracts are valuable business tools. If you run a company and need to work with an outside party, creating a contract can help everyone involved understand the expectations of the work, compensation and other important details. These contracts can also include potential repercussions in the event that one party breaches the terms.

Unfortunately, even though contracts can provide a great deal of protection, they are not foolproof. If one party does decide to violate the terms of the agreement, additional action is often necessary to address the violations. However, you do not have to immediately jump to litigation.

Start informally

If a person or company with which you have a contractual agreement breaches the terms, you may first want to bring the issue up informally. You could have a meeting with the appropriate party or even make a phone call if you believe it could suffice. In some cases, individuals may not remember every detail of the agreement, and a simple lapse in judgment may have resulted in the violation. A simple reminder could very well allow for a quick resolution.

Taking formal steps

If the informal approach does not have the desired results, you may need to take more formal steps. The first step could include writing and sending a breach of contract letter to the breaching party. The letter can include information about the breach, how it violated the contract, when it occurred and the section of the contract that addresses the specific issue. 

It is important to include the date on the letter so that there is an official record of when the breaching party received notice of the problem. You could also include a proposed solution to the issue in your letter. If the recipient of the letter does not respond or does not agree to the proposed solution, you may need to take legal action.

Considering litigation

It is not uncommon for breaches of contract to lead to litigation. If the breaching party does not appear willing to work with you to resolve the issue, you may need to begin looking into your legal options. Discussing your contract, your concerns and the other party's actions with a Florida attorney may allow you to determine whether you have reason to move forward with a legal claim in order to pursue damages.

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