You want to maintain a good relationship with your suppliers, clients and even former employees. You could do business with them again in the future, and conflict could impact your reputation with that person or business and their professional connections.
If one of those parties violates the terms of a contract with your company, you may at first choose to overlook that breach. You might also reach out to the individual or company to try to resolve the matter amicably.
Unfortunately, sometimes a breach of contract is intentional and can have damaging consequences for your company. If the other party cannot or will not resolve the matter voluntarily, litigation may be necessary to protect your company’s interest.
The courts can order the other party to act
Asking nicely or pointing out the contractual obligations of another party may not resolve their non-performance issue. Whether they have failed to perform contracted services after receiving a deposit or did not deliver necessary materials, your company could suffer losses because of their failures.
You can’t do much on your own to make the other party to the contract uphold their promise to you. Going to court may be the only way to legally compel the other party to fulfill their obligations to your company under the contract. A judge can order specific performance of the other party to fulfill their duties under the contract. In some cases, going to court can also mean that you receive damages for the consequences of the other party’s breach.
Understanding how business litigation can help you solve your contract issue will make it easier to respond to a contractual issue.