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Is court necessary to resolve a breach of contract issue?

On Behalf of | Oct 26, 2022 | investment Partnerships

Resolving a business dispute in court is not always the ideal solution. It can be very expensive to go to court, and you may have to wait months before you have a hearing in front of a judge. You also have to worry about what the other party might say in court and how their responses to your claims might affect your reputation.

Even when your claim is successful, the other party could still damage your standing in the community and affect your company’s future revenue. Of course, such disputes often end up in court because the parties who originally negotiated the contract no longer agree about what is fair or appropriate related to their arrangement with one another.

Is it possible for you to settle the matter with the other company without taking the matter to civil court?

Many business contract disputes settle

The good news if you hope to avoid court proceedings in your contract dispute is that many business disputes that resulted in one party filing a civil lawsuit end up settling outside of court. When the other party to the contract realizes that you will assertively pursue your rights, they might finally fulfill their obligations to you or agree to sit down for mediation.

The threat of pending litigation is a powerful motivator for someone who has previously ignored their contractual obligations to you. Trying to work with one another and settle your disagreement amicably can be a smart choice if the other party cooperates and you want to continue doing business with them.

Going to court may make more financial sense

The benefits of going to court can be significant for a company coping with noteworthy consequences related to a breach of contract matter. Especially if you have made payments and not received goods or services or if your company has taken losses and you want compensation, a lawsuit may be the best way to minimize the financial impact another company’s breach of contract has on your organization.

Some people will try their best to negotiate a settlement outside of court, while others may recognize that presenting their case to a judge is the best way to secure optimal results in their situation. Evaluating different options for resolving breaches of contract can help owners and executives act in the best interests of the company that they manage.