It’s Business, And It’s Personal

Breach of contracts don’t have to involve courtrooms

On Behalf of | Jul 14, 2020 | Corporate Contract Law |

Writing contracts are a big part of business, and lawyers are often best involved on both sides of a deal so the text of an agreement is clear and stands up in court. One of the most important parts of the business environment involves the feeling of trust and faith in a shared system — but that means every party to a business agreement has to uphold their end of a bargain.

Violations in contracts have to be managed appropriately, and that starts with recognizing them when they happen. There are two main types of violations, or breaches, of contractual obligation. The first type is an “immaterial” breach, which is when something rather trivial happens against the agreement, like a delivery that’s a day overdue but doesn’t affect the usefulness of the product to the recipient or an ethical clause violation without a real consequence.

Immaterial breaches lead to little more than soured business relations in the real world, but material breaches can lead to a case for financial damages or another type of restitution. This is when something very substantial happens against the agreement, like a delivery is never made or an ethical violation that led to a contract being awarded to someone else.

North Carolina has several civil courts that are able to manage lawsuits resulting from a breach of contract. There are, however, often alternatives like mediation or settlement that are far less costly and time-consuming.

An attorney should usually be involved when you are creating a business contract, and an attorney is recommended if you are facing a case of breach of contract. A lawyer can be very helpful even if going to court is not required to solve a problem between contract partners.