As a business owner or manager, a big part of what you do is ensure that daily operations continued smoothly for the company. Having adequate contracts in place with both staff and suppliers can help you turn the chaotic world of business into something more predictable.
Unfortunately, contracts can easily wind up breached or violated. What can you do when a breach of contract threatens your business’s stability and daily operations?
Formally advise the other party of their failure
Not everyone who runs a company has adequate organization and help. Sometimes, individuals or companies overextend themselves and can’t meet all of their obligations as quickly as their business partners would like.
In order to remind the other party of their obligations to you and hopefully spur them into action, it is usually wise to send them written notice about their violation or breach of the contract. That written notice could be enough to motivate the other party to correct their mistake and take the necessary action to bring them into contractual compliance.
Be ready to take action when someone hurts your bottom line
Whether your former employee violated your employment contract by starting a new business in the same industry as yours or a supplier has failed to make critical deliveries to your company, the behavior of other people can impact your daily operations and profit margin.
Taking legal action to remedy a breach of contract and to hold someone accountable for the impact of that breach on your business will set an important precedent. The sooner you take action, the less of an impact the breach should have on your company overall. If you’re unsure where to start or what to do next, an experienced attorney can help.