Practical tips for avoiding breach of contracts

Typically, most business people do not want to be in a situation where they feel compelled to get out of a contract before the end of the contract term. However, sometimes there are situations that force parties to an agreement to terminate a contract. If it becomes necessary to do so, the following precautions should be taken:


Review the Contract

It seems obvious, but reading and understanding the contract is a must!

Review the contract, including any amendments, letters or emails. Pay particular attention to whether the contract contains any provisions that specify whether a penalty may be assessed for a breach or early termination, and whether early termination entitles the other party to recover damages.


Take the Direct Approach

Approach the other party to the agreement to see if a settlement can be negotiated. Being up front with the other party may relieve you from liability for bad faith or malicious dealing, and it may prevent having to settle the matter through legal means.


Discuss your Dilemma with Legal Counsel

Usually the language of a contract is difficult to understand or interpret. Proper legal counsel can help ensure you take the right course of action for dealing with next steps.

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