When facing business litigation and breach of contract, for example, you have to act quickly and give little response time for your enemies. Naturally, this implies the timely hire of professional business litigation lawyers, because they are the only people who can get you and your company rid of such issues.
As mentioned, today we’ll be talking about business litigation and breach of contract, since these are two things you may have to face while running a company.
Therefore, without any further ado, here is everything you need to know about the two things mentioned above!
- What is Business Litigation?
Business litigation implies disputes that have arisen out of business and commercial relationships, including the claims of a certain establishment against a company, groups of individuals, or governmental entities.
Such disputes/issues are mostly complex ones, thus making it essential for business litigation lawyers to understand the business of their clients.
- Types of Business Litigation
As expected, breach of contract is a type of business litigation. Other types may include breach of fiduciary duty, trade secret disputes, regulatory investigations, post-closing disputes, insurance disputes, as well as partnership disputes.
In short, everything that affects the atmosphere within a company may have business litigation as a result.
- Why Should You Avoid Business Litigation?
The main reason to avoid business litigation is the fact that such lawsuits are public records. Therefore, they can create PR issues for the companies involved in them, eventually bringing your company down.
The reputation of a company can be damaged so hard due to business litigation that it simply cannot rise again and perform its operations. Keep in mind that a damaged reputation causes a decrease in sales and an increase in expenses.
Breach of Contract
This type of business litigation occurs when one of the contract parties does not live up to their part of the agreement. Moreover, a breach of contract can be partial, anticipatory, material, or fundamental.
If you want to fill in a breach of contract case, for example, the contract’s aggrieved party must prove that:
- The contract in discussion is valid.
- The contract was, in fact, breached.
- The aggrieved party has respected their part of the contract.
- The breaching party was informed of their actions.
Levels of Breach of Contract
As mentioned above, a breach of contract can vary in level/identity – also known as severity. Ranked based on severity, we can round up four types of breach of contract cases:
- Minor/Partial Breach – this implies the breach of some agreement terms. This type of breach does not excuse the aggrieved party, which still has to live up to their part of the contract.
- Anticipatory Breach – this type implies a breach that has not happened yet. One of the contract’s parties suspects that the other will breach it. Naturally, this makes such breaches very hard to prove in the court of law.
- Material Breach – this implies a serious violation of the contract and may result in the relief of the aggrieved party from fulfilling their part of the contract. For example, a material breach occurs when one party fails to pay for the services/goods that the other party has provided to them.
- Fundamental Breach – naturally, this is one of the most serious breaches of contract. In such a case, the aggrieved party may sue and even get rewarded damages.
The Bottom Line
Businesses come with many things that you have to keep an eye on if you want to be successful. For example, some of the entities you have contracts with may be breaching them without you even knowing.
This is why, whenever you engage in some new activities – especially when it comes to businesses, money, and so on – you have to take your time and read as much as you can about them.
This includes checking the laws around those activities, as well!