A valid contract between you and another party can give your business the goods or services necessary to run smoothly. However, what happens if the other party does not hold up its end of the agreement? A contract breach means that one party has stopped abiding by the terms of the agreement in one way or the other.
In a contract breach, Florida law allows you to pursue legal action. In some situations, this results in a resolution to the problem, but it may still leave your business in a dire situation depending on the type of breach. Take a closer look at the most common causes of contract breaks in the Sunshine State.
What constitutes a contract breach?
Simply breaking the terms of a contract is not enough to constitute a legal breach. The break of terms must result in your company sustaining damages or financial fallout. If your agreement stops you from delivering a product or service to someone else, the financial damages may prove substantial.
What are common contract breaches in Florida?
Each contract has specific terms that make it unique. However, there are reasons for a breach that crop up more often in commercial contracts:
- Failure to deliver services or goods
- Not remitting payment as required
- Hiring a third party who does not complete the job
- Inflating the value of a business to increase credibility
In some cases, proving a breach is straightforward, while other times, it may prove more complicated. With the proper legal guidance, your company may come out on the other side of a contract breach in better condition.