Most contracts between Arizona companies and other parties are fulfilled as expected. Sometimes, however, a company cannot fulfill its end of the agreement and ends up in litigation with the other party. A breach of contract accusation can seriously affect a company and should be avoided if at all possible.
The first thing to keep in mind is your company’s reputation. Most customers are leery of doing business with someone who doesn’t keep promises. If you are going to breach your contract, it better be for a very good reason. Word of mouth is a powerful form of advertising that can help or harm a company.
If the case goes to court, you will have to hire an attorney and incur legal fees. You will also be obligated to make court appearances, which will keep you away from your business. If the court determines you have breached the contract it may order you to perform the duties outlined in the contract, or you may have to compensate the other party financially for your breach.
If at all possible, a company should perform all the obligations outlined in its contract. Nonetheless, not all accusations of breach of contract have merit. Some are groundless. In some cases the other party may be misinterpreting the contract’s language or misstating the facts.
You have the right to defend your company in court against baseless allegations. An experienced Arizona business litigation attorney can help you evaluate the situation and decide whether to contest the accusation.
Source: FindLaw, “Top 10 Reasons to Avoid Breaching a Contract” accessed Feb. 7, 2015
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