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Basics of breach of contract claim, Part 2

Contracts are the bread and butter of the business. They enable companies to cooperate, exchange goods and services, and make a profit. That means, when a breach of contract occurs, the core building block of business has broken down. As discussed in a previous post, a breach of contract occurs when one party refuses to fulfill their reciprocal obligations under the contract. This post will go over alternative solutions once a breach occurs.

After a breach, you may immediately want to resort to a lawsuit, but that isn't the only solution. Depending on the terms of the contract, you may be compelled to submit to arbitration or mediation (which are guided forms of "alternative dispute resolution methods.") The contract may even require that you continue to negotiate until a solution is reached. Additionally, even if the contract does not require it, you may want to try one of these informal strategies.

Litigation, lawsuits and attorneys tend to ramp up the "temperature in the room" and thus can cloud the ability of the parties to reach a solution. But, that being said, you don't want to engage in these solutions without the background assistance of an attorney. A lawyer can review the situation and advise you of the various legal pitfalls.

Dealing with a breach of contract is usually best done outside of the courtroom. You usually want to utilize a lawyer at this stage because everything you say during the dispute could be used against you as evidence. An attorney on your side can ensure that you don't give up too much or too little during these tense negotiations. You don't need to figure this out on your own, an attorney can advise you of the efficacy of a variety of solutions.

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