Reasons to Avoid Breaching Your Company Contracts

Whether you wrote your contract years ago and do not think it’s valid or you just think there won’t be consequences, a breach of contract is a serious offense. If you need to modify a contract or think a breach is your only option, contact a contract attorney in Houston right away.

Why Should You Never Breach a Contract?

·         Your Brand’s Reputation is at Risk – Breaching a contract, while a private action between you and the other party, could still go public. This could be a detrimental hit to your brand’s reputation — and decrease the likelihood companies will enter into contracts with you in the future.

·         You Could Face a Lawsuit – Breaching a contract could mean the other party will sue you for such.

·         Business Productivity May Suffer – When you breach a contract, you may have to spend time in court or spend time with your contract attorney in Houston dealing with restitution and negotiations. This time away from your business could affect productivity.

·         Legal Fees Will Pile Up – Depending on how your contract is written, you may not only have your own legal fees to deal with, but the legal fees of the other party.

·         You May Owe Damages – Once you breach a contract, you may be required to pay the other party damages. These include punitive, consequential and compensatory damages. The amount you end up paying could also affect your business’s financial stability.

·         Contempt of Court – If the court makes a decision regarding your breach and you do not follow it, you are not only liable for that breach, but you now face a contempt of court.

Contracts are put in place for a reason — to protect both parties entering into an agreement. If for some reason you need to breach a contract, don’t. Instead, contact a contract attorney in Houston for legal advice and assistance. A breach is not your only option. Often you can renegotiate the terms of your existing contract or negotiate with the other party to end your existing agreement without breaching.



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