Formal agreements between two Louisiana parties can protect the interests of all involved because they outline the rights and responsibilities of each. Business contracts are powerful and useful tools when utilized in the right way, yet there are times when it is appropriate to terminate an agreement for the best interests of one or both parties, or for other reasons. Ending business contracts can sometimes lead to disputes and the potential for litigation.
Steps to ending a contract effectively
There are certain scenarios that effectively terminate the terms of a contract and release one or both parties from continued obligation to the agreement. These include:
- Completion of the contract or fulfillment of all contractual duties
- Recission of the contract, which is when one party misrepresented themselves in some way
- Breach of contract, which is when one party fails to adhere to the terms of the contract
- Impossibility of performance, which is when one party is unable to meet the obligations set forth in the contract
- Termination of prior agreement, which is when there is a previous agreement regarding circumstances in which the contract will end
Ending a contract can lead to disputes between parties regarding remaining duties, financial loss and more.
Defending the interests of a business
When ending a contract or facing concerns over the terms of a business contract, a company will benefit from the guidance of an experienced business law attorney. Effectively navigating these matters can lead to a lower chance of litigation or other complications that will cost time and money. In the event of litigation over a contract, however, a business will find it helpful to have knowledgeable counsel at every step.