Business agreements can go south due to mistakes, miscommunications, or any number of reasons, but there is often intentional conduct behind a breach of contract. If you are considering getting your company involved in a legal dispute by not complying with the terms of an agreement, you may want to reexamine your options. The other party to the contract does have rights, and you could end up trying to defend your company’s interests at the Pinellas County, FL courthouse. Here are the Top 5 reasons to think twice and talk to a Clearwater business litigation lawyer about other legal options that may be available.
- Lawsuits and Associated Fees: Breaching a contract gives the aggrieved party grounds to sue your business, and litigation involves various costs. Not only are there fees to file an appearance in court, but there are other expenses you will incur in defending your interests. Plus, you cannot put your company at risk by taking on representation yourself, so you will need to hire an attorney.
- Your Company’s Reputation: You have no doubt built a reputation as a business owner, and your company also has standing in your community. Goodwill is a valuable asset to any organization, but you diminish it by failing to comply with contractual obligations. Breach of contract and similar legal disputes create a poor impression among business partners and customers.
- The Distraction of Legal Issues: Even when you do have a lawyer, you will invest time, effort, and other resources when trying to resolve breach of contract issues. You may need to attend depositions and court hearings, and could spend hours reviewing documents related to the contract at issue. Plus, your mind will be weighed down with such a legal conflict, taking focus away from running your business.
- Risks if You Lose in Court: You probably have a clear idea of what your contractual obligations are and understand what types of conduct will break them. If you know these details, you can be sure they will also come to the attention of the court. The chances are high that the aggrieved party will be entitled to various types of legal relief, including costs, attorneys’ fees, liquidated damages, and other remedies. In addition, the plaintiff may request, and a court may order, specific performance. This means that, regardless of your breach of the contract, you will still have to comply with your contractual duties.
- Business Relationships: When you do not follow through on a contract, you can be sure that the aggrieved party will no longer want to engage in a business relationship with your company. However, there are associated risks that you may not expect when you breach a contract. As mentioned above, you harm your business reputation by failing to comply with an agreement. Word gets around about contractual misconduct, so you could jeopardize other business relationships as well.
Talk to a Knowledgeable Florida Business Litigation Attorney About Your Options
For more information on the implications of a breach of contract in Florida, please contact Clearwater Business Law at (727) 785-5100. We can schedule a consultation with one of our lawyers who can explain some effective legal strategies that avoid legal contractual problems.