Ashby Law Firm P.C.

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How can you defend an accusation of breaching of contract?

On Behalf of | Nov 11, 2022 | Litigation Defense

You likely have many different contracts with different parties if you are in business. Problems can soon occur if one party feels the other has not stuck to the deal.

What can you do if someone accuses you of breaching the agreement?

Check if the contract is valid

A well-written contract should have an expiry date. If the supposed breach happened even one day after the contract expires, then you probably do not have a case to answer.  The same could apply if one party never got around to signing it or there is a legal technicality that invalidates the document.

Check if the other party is interpreting it correctly

Did you do anything wrong? Or is the other party misinterpreting things? Contract documents can be complex, and not everyone who signs them understands all the clauses contained within them.

If accused of a breach, checking to make sure you understand things correctly can help inform your next moves.

Check if the other party upheld their side of the agreement

Maybe you did do something wrong. Yet if the other party also breached the agreement, it can give you more bargaining power.

Consider the long-term consequences of any actions you could take

Let’s say you breached the contract with your best client, but the contract is a couple of weeks out of date. Telling them that it is not your problem as you no longer have a contract is not going to be the right solution in this case, because you probably want to renew that contract to keep their business, even if you have to compensate them in some way for the error you made.

Getting legal help to examine how to react if accused of a contract breach can help you make the best decision for your business.