How do I handle contract breaches?
Steps to take
When you suspect a breach, gather evidence: emails, receipts, photos, and the contract itself. Determine if the breach is material (serious enough to excuse your performance) or minor. For minor breaches, you might just ask for a fix. For material breaches, you can terminate the contract and seek damages.
Send a written notice describing the breach and what you want—like payment or corrective action. Give a reasonable deadline to fix it. If the other party ignores you, consider mediation or small claims court for smaller amounts. For larger disputes, consult a lawyer.
- Document the breach with dates and details.
- Send a formal notice via email and certified mail.
- Propose a solution: refund, reschedule, or compensation.
- Keep records of all communication.
Legal options
If informal resolution fails, you can sue for breach of contract. The remedy depends on the loss: you might seek monetary damages, specific performance (forcing the other party to do what they promised), or cancellation. Many contracts include a clause about attorney's fees and venue for lawsuits.
Mediation is often faster and cheaper than court. Some contracts require mediation before litigation. If you go to court, be prepared to prove the breach and your damages. For small amounts, small claims court is an option, but it has limits (often $5,000 to $10,000, varying by state).
Common mistakes
- Ignoring a breach and hoping it resolves itself—it can worsen and weaken your legal position.
- Terminating the contract without giving the other party a chance to cure, which might be required by the contract.
- Failing to mitigate damages—you have a duty to minimize your losses, like trying to rebook the venue.
