When two parties enter a contract together, the assumption is that both sides will adhere to the terms of the agreement. Should one party fail to do this, it can be frustrating and costly. For a Louisiana business, this is much more than just an inconvenience. It represents the potential that a company could suffer financial harm and other challenges as a result of the breach of contract.
If your Louisiana business suffered because of a breach of contract issue, there are options available to you. You could have a right to certain remedies that will allow you to recoup your losses and move forward after this event. When it becomes clear the other party will not cooperate and adhere to the terms of your contract, you may then find it helpful to learn about enforcement options and how you should proceed.
What can you do?
Your first instinct after a breach of contract may be to reach out to the other party and determine what went wrong. There are times when an out-of-court resolution to the situation is possible, and you may be able to reach a final solution that is reasonable and satisfactory to both parties. However, this is not always possible, and sometimes, it is necessary to pursue legal recourse. Remedies available include:
- Specific performance — A court may compel the offending party to perform the duty as outlined in the contract or to do something similar.
- Damages — The court may order the offending party to pay damages, which may include punitive, compensatory, nominal or liquidated damages.
- Cancelation and restitution — The non-breaching party may cancel the contract and then pursue appropriate restitution from the offending party.
It’s complicated to navigate the aftermath of a breach of contract. There could be large sums of money at stake, and it may be important for a business’ long-term interests to seek the most beneficial outcome to this situation as quickly as possible.
Litigation may not be your first choice after a breach of contract matter, but it could be the most prudent course of action for your situation. Before you agree to a settlement, accept the terms of an out-of-court resolution or take any other steps that could impact the long-term interests of your company, you may wish to understand all of the legal options available to you.