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Commercial Contract Breaches: Legal Remedies and Enforcement

A breach of contract is a violation of any agreed-upon terms and conditions of a binding contract.  The breach could be anything from a late payment to a more serious violation, like failing to deliver a promised asset.  A breach of contract can happen in either a written contract or an oral contract.

Legal Recourse for Contract Breaches

Legal recourse for a commercial contract breach provides the non-breaching party with options to seek compensation, enforce contractual obligations, and resolve disputes.  In Florida, you can sue for breach of contract as long as you meet three criteria; there must have been a valid contract, there must have been a material breach of the contract, and you must have incurred damages as a result of the breach.

The specific remedies available will depend on the terms of the contract, the nature of the breach, and applicable laws.

Enforcing the Terms of Agreements

Enforcing the terms of agreements in a commercial contract involves taking specific actions to ensure that both parties fulfill their obligations as outlined in the contract.  It should be said that communication with the other party is always key to avoiding escalation.

The first step is always to review the contract to understand each party’s rights, obligations, and the specific conditions that trigger those obligations.  It is also important to keep detailed records documenting your performance under the contract, which will be important evidence in case of a dispute.

At this point, it is important to seek advice from an attorney experienced in contract law.  They can provide guidance on the strength of your case, possible legal remedies, and the best course of action.

If the other party is not fulfilling their contractual obligations, your attorney will probably send a formal notice of breach.  Here, the specific breaches should be clearly outlined, and the notice should request remedial action within a reasonable time frame.  If that does not work, mediation or alternative dispute resolution (ADR) may be the next step.  If these negotiations are not successful, your attorney will most likely send a demand letter clearly stating the legal basis for your claims, the desired solution, and a deadline for compliance.

If all else fails, you may need to file a lawsuit in the appropriate Court

Remedy Options for Commercial Contracts

Depending on the contractual elements, there are several remedy options available for a commercial contract breach.  There could be compensatory damages (both direct and consequential damages), liquidated damages, enforcement obligations, injunctive relief, recovery of goods, unjust enrichment, termination of contract, preliminary injunctions, statutory remedies, as well as a recoupment of attorney’s fees and costs.

Protecting Your Business's Interests

Protecting your business’s interests when entering into a contract is crucial to avoid disputes, mitigate risks, and ensure that the terms of the agreement align with your objectives.  Contracts should always specify performance expectations, include indemnification and liability provisions, specify confidentiality and no disclosure to protect sensitive information, as well as address intellectual property rights, and incorporate termination clauses.

You should always seek legal advice before entering into any contract.

Seeking Professional Legal Guidance

Enforcing a commercial contract can be a complex legal process and the specific steps to take will depend on the unique circumstances of your specific situation.  Consulting with a legal professional is advisable to ensure that you pursue the most effective and legally sound course of action.

I’m Rob Robinson, and I have been practicing law in Florida for more than three decades.  Experiencing a breach of contract can be daunting, but it can be solved through several remedies.  I can provide strong and effective legal representation during litigation of these types of cases.  Please contact my office to learn more about how I can assist with matters related to contractual law and breach of contract.

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