Creating a business contract is a way of formalizing and enforcing arrangements or agreements you have made with another company or an individual. Common business contracts include employment contracts and supplier or sales contracts with clients, customers, vendors or service providers.
The smooth, continued operation of your business may depend on the performance of the contract. Timely delivery of certain materials, the ability to rely on certain services or adequate staff can all impact your business’s daily operations. When a person or company violates their contract and causes a financial loss for your business, you may need to take steps to enforce your contract.
Review your written contract before trying an informal resolution
Before you make any claims of breach of contract, verify that the terms of the contract actually align with your expectations. Provided that they do and that you believe the other party has failed to uphold their part of the contract, a polite, informal communication can be a good first step.
An email or text message is ideal, as it provides a written record of the communication. Reach out and advise the other party of the violation and its impact on your business, and ask if they can remedy it quickly. If they refuse or do not respond, then you may need to take further action.
Official written requests may help before going to court
If the other party did not respond to or responded unfavorably to an informal request to remedy the situation, sending them a legal letter drafted by an attorney that advises them of your intention to enforce the terms of the contract could be enough to motivate them to take action.
In some cases, you can expect a quick response. Other times, such an effort at enforcement may only provoke the other party into stubborn and continued noncompliance. However, you can at least demonstrate that you have made repeated efforts to resolve the issue outside of court.
If the other party in the contract does not correct their actions and take appropriate action after a formal written request, filing a motion with the courts and requesting judicial intervention may become necessary.