Purchases and sales, work performance, employment – businesses in North Carolina and elsewhere commonly use contracts to make legal different agreements. Whatever the terms agreed upon, each side generally assumes the others will uphold their ends. Sometimes, however, one side or the other might
To help avoid potential issues that may derail their businesses, it often benefits business owners to understand what constitutes a breach of contract and the potential remedies when this type of violation occurs.
What is a breach of contract?
According to state law, breach of contract refers to situations in which a contract party fails to fulfill its obligations under the terms. Depending on the circumstances, this may result in work stoppages, operational issues or adverse economic effects.
What are the remedies for business contract breaches?
When issues arise involving business contracts, the remedies typically aim to see those violated made as close to financially whole as possible. According to the University of North Carolina School of Government, the remedies for contract cases typically include financial damages. The court will employ general principles to award monetary, liquidated or nominal damages. In some cases, the court will also assess attorney’s fees as part of the compensation owed to the injured party.
As part of their operation, growth and success, businesses often rely on the contracts they enter into with contractors, service or product providers, employees and others. Therefore, when drafting, signing or enforcing contracts, business owners may find it helpful to work with a legal representative to ensure their rights and interests are protected and to fully understand their responsibilities under the contract terms.