Weinberger Law

Breach of business contracts could lead to commercial litigation

Scottsdale businesses enter into all types of contracts in which they expect both sides to fulfill their obligations. Sadly, that does not always happen. Commercial litigation often deals with one party who breached a contract to the detriment of the other.

The focus of any such lawsuit will be the contract itself. If it fails to adequately protect your rights, you may not receive the relief and restitution you deserve. It does not often matter what type of contract you entered into when it comes to litigating a dispute. It could be a purchase and sale contract for real estate or some other property of value, contracts with your employees, or contracts for advertising. Even contracts signed within your company such as corporate bylaws, a partnership agreement or a limited liability company operating agreement could end up subject to litigation.

What matters most is that your company is impacted by the outcome of the contract. If you need goods in order to further your business, but the supplier or vendor you entered into an agreement with fails to deliver, your business could suffer significantly. If you and one of the other owners, members or partners in the company end up in a dispute, it could cause substantial harm to the business, both now and in the future.

More than likely, you want to try to stay out of court if possible. You could try simply communicating with the other party that he or she is bound by a contract and should abide by it, but it may take more "official" action than a friendly conversation. You may need to involve a Scottsdale attorney who can begin by reviewing the contract and explaining your rights under it.

Thereafter, it may be best to begin with a demand letter that memorializes your concerns and your belief that the other party breached the contract in some way. This begins a paper trail for you so that the court knows you attempted to resolve the situation amicably prior to filing commercial litigation. It also puts the other party on notice that you are not afraid to pursue your legal remedies and shows the court that the other party continuously failed to cure the breach or engage in discussions to resolve the issue.

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