Can you prevent a contract breach from happening?

On Behalf of | Feb 21, 2024 | Business & Commercial Law

A contract is a legally binding agreement between two or more parties. Parties may agree that one party is responsible for supplying a service or product, which is detailed in a contract. These outlines can include when a service or product is expected to be supplied, what materials are to be used, how long a party has to complete their duties and how a party is paid for fulfilling their obligations.

There are three elements to a strong contract:

  1. The contract must be clear. Any confusion about language should be addressed before signing a contract.
  2. Expectations from each party should be outlined. Each party should know that they can complete their responsibilities.
  3. The contract must be legal and include each party’s signature.

Contracts are meant to help make parties responsible for their end of an agreement. However, a contract can be breached. A contract breach often means that a party failed to fulfill their end of an agreement, which can happen in many ways. For example, the wrong kind of wood used to build a home, a shipment of fruits being delivered a day late or a service never being fulfilled are all forms of contract breaches. A breach in a contract can greatly disrupt business.

Can you avoid a contract breach? Here’s what you should know:

Taking precautions to avoid contract breaches

What many people want to know is if they can avoid contract breaches from happening. A contract breach can be prevented with a strongly drafted contract. A contract may even include a breach of contract clause to set expectations if a breach should occur.

A breach of contract clause clarifies that if a breach happens, then the responsible party is liable for damages. This often means that a party will need to pay damages and their relationship and obligations with the other party be discontinued. By including this clause, it can remedy any issues that a party could cause.

If a contract is breached and there is no breach of contract clause, the non-breaching party can still take legal action to recover from damages. It can help to reach out for legal guidance to navigate a contract breach.