Running a small business in Oklahoma requires wearing many hats. If you are a business owner, you like juggle marketing and financial operations to keep your customers coming back. Yet, you may be understandably not in a strong position to navigate a legal situation alone, let alone one that is consequential in nature.
What happens when a critical agreement is broken? This is where seeking legal guidance and potentially filing breach of contract litigation comes in. Breach of contract litigation may be a complex and stressful situation, but understanding your options can empower you to protect your business.
When contracts go wrong: Recognizing a breach
A contract is a legally binding agreement between two or more parties. It outlines the rights and obligations of each party. A breach occurs when one party fails to fulfill their contractual duties. Here are some common red flags:
- Non-payment: A customer fails to pay for delivered goods or services
- Delayed delivery: A supplier fails to deliver products on time, impacting your operations
- Failure to meet specifications: Goods or services don’t meet the agreed-upon quality standards
- Wrongful termination: A contract is terminated without cause, causing financial harm
If you suspect a breach, gather all relevant documents, including the contract itself, communication records (emails, voicemails) and any evidence of damages incurred (receipts, invoices).
Before resorting to litigation, consider initiating a conversation with your partner. Open communication can often lead to a solution that avoids court. Send a clear, concise demand letter outlining the breach and requesting corrective action.
Breach of contract law and litigation
For you to prove that your partner breached your business contract, you’ll need to demonstrate:
- The existence of a valid contract
- The other party’s breach
- The damages you suffered as a result
In Oklahoma, you can typically recover monetary compensation for your financial losses caused by the breach. You or your legal team can carefully evaluate your damages to help ensure you pursue the maximum compensation you deserve.
A breach of contract can disrupt your business operations and finances. However, you can effectively address the situation by understanding your rights and taking proactive steps. Remember, prevention is always better than cure. Therefore, you should ensure your contracts are clear, concise and well-drafted. Nonetheless, breaches can still happen, and when they do, seeking legal help can potentially safeguard your business and help to better ensure that you receive fair compensation for your losses.