Contracts are legally binding documents that force all parties involved to fulfill the terms of the contract or face legal ramifications. Businesses rely on contracts to conduct almost every aspect of their operations with other businesses and consumers. Without these enforceable documents, companies would share little trust with people and transactions may not ever occur. Thankfully, the law protects the binding nature of contracts, so if any contractual disputes arise, any party can bring forth a case before a court.
The economy relies on contracts to ensure that parties who enter into contracts are accountable for their promises. In many contracts, there are already terms and conditions in place concerning what will happen to a party if they fail to fulfill the terms of the contract. Such self-enforcement techniques often include loss of equity, repayment, and asset redistribution.
If the self-enforcement terms are not enough to get both parties to cooperate, contract law is in place to process any claims regarding contract disputes in local courts. Judges will review the contract and listen to each party’s defense before determining if a breach of contract occurred. While these court proceedings are typically quicker than other legal cases, the costs associated with them are significant and can easily make legally enforcing a contract inefficient.
Before pursuing litigation in a contract dispute, it is important to consider alternative dispute resolution methods. Arbitration and mediation allow many parties in contract disputes to settle their claim without incurring the high costs of court fees and spent time. However, if a party refuses to consider renegotiating the terms of the contract, litigation may be the only remaining option to enforce a contract.
If you or someone you know has entered into a contract wherein a party failed to fulfill his or her end of the bargain, you have many legal options to begin enforcing the terms of the contract. You may even be able to recover compensation. At Smith Kendall, PLLC, our attorneys believe everyone who signs a legally binding contract is liable for the promises they make. Contact our office at (214) 361-6124 today to learn more about how we can assist you in your breach of contract case.