What Are the Most Common Causes of Breach of Contract?

 Posted on October 15, 2024 in Business Law

Contracts are the backbone of a business. They set expectations, define relationships, and provide protection for people and business assets. If a contract is breached, it can cause severe damage to an enterprise. Small businesses in particular are vulnerable to breaches of contract, whether by employees, vendors, partners, or clients. They are often hardest hit by losses of revenue and operational damage resulting from a breach of contract. That is why small businesses should make sure to retain an experienced Texas commercial litigation attorney who will help repair the damage caused when an agreement is violated.

What Are the Most Common Causes of Breach of Contract?

The first step to avoiding a situation where a contract is breached is to understand the most common causes for violations of business agreements. These include:

• Failure to perform: People and companies who are contractually obligated to perform certain tasks do not always do so or do not do so according to the contract terms. An employee who sleeps on the job, for example, can be considered in breach of contract. The same can be said of a contractor who oversees a sloppy renovation.
• Untimely delivery: Another common form of breach of contract is failure to deliver goods or services on time. Prompt and timely deliveries are especially critical in the event planning industry, where caterers, florists, and other vendors must keep to a strict timeline.
• Non-payment: Sometimes a party refuses to pay or does not pay on time. Contracts usually define a certain amount of time a party has to make a payment, often 30 days. Failure to do so within that period can be considered a breach of contract.
• Contract disputes: There are also situations in which parties refuse to pay or fulfill obligations because they believe there has been a breach of contract. Such contract disputes can be complex and should be handled by an experienced attorney.
• Change in circumstances: Sometimes businesses or individuals suffer significant changes in circumstances that make it difficult for them to fulfill their contractual obligations. Supply chain disruptions or economic crashes, for example, can cause a breach of contract.

What Can I Do About a Breach of Contract?

Even when you try to avoid a breach of contract, it can still occur. If such a situation arises, the best solution is to contact a corporate lawyer who is experienced in breach of contract cases. He or she will determine if you can:

• Collect compensation for any costs or lost revenue as a result of the breach
• Enforce the contract terms to force the other party to fulfill his or her obligations
• Revise the contract so it is better suited to both parties

Contact a Comal County, TX Commercial Litigation Attorney

Hiring a San Antonio, TX breach of contract lawyer is an important step toward repairing the damage caused by a contract violation. At Geoff Mayfield, Attorney at Law, we understand the challenges small businesses face and how a breach of contract can result in harm. Let us fight for you and aggressively litigate on your behalf if necessary. Schedule a free consultation by calling 210-535-0870 today.