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Four reasons to never breach a contract

Contracts are an indispensable part of doing business. Yes, handshakes and verbal agreements will work in some rare instances, but having a written contract is the best way to protect your business from potentially unscrupulous companies and people. If a contract dispute does come up and your contract is sound, you'll have nothing to worry about.


Conversely, as a business owner, it's in your best interests to not breach a contract, and it's not just because of the financial implications. Here's why:

  1. If you're accused of a breach of contract, it will not only affect the reputation of your business in the community; it will affect your relationships with other business owners.
  2. You could be sued, which will mean legal fees and can mean significant time away from your company while you deal with the proceedings.
  3. The courts could force you to pay punitive, compensatory or consequential damages and those can end up being more expensive than just fulfilling the terms of the contract.
  4. If you don't obey the court's decision, you could face jail time and fines.

These reasons are why it's important to have an attorney help you draft contracts or check over contracts before you sign them. Doing this could save a load of trouble down the road.

If you do find yourself facing an accusation of a breach of contract, a lawyer can also help you defend your position in the contract and may be able to help you maintain your reputation as a business owner.


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