Contract breaches can be frustrating and inconvenient. They can disrupt company operations and cost an organization money. In the worst-case scenario, a breach of contract can cause a ripple effect of negative consequences, including challenges fulfilling outside contract obligations to third parties.
Professionals and business leaders dealing with a material breach of contract, such as a vendor’s failure to deliver materials or a service provider failing to uphold the service agreement, may assume that the material breach of the contract invalidates the agreement and makes other provisions unenforceable. Contrary to that assumption, contracts often retain their authority even after major breaches.
Contract clauses increase enforceability
Contracts specifically include clauses that address breaches of the agreement. A severability clause makes the remainder of the contract enforceable even in cases where one party has failed to uphold other key elements of the agreement. Business leaders frustrated by a vendor’s failure to deliver on time or to meet quality specifications may still have an obligation to render payments unless they document and appropriately respond to the breach of contract that occurred.
Frequently, those hoping to eliminate contractual obligations after a material breach by the other party must take the matter to civil court. A judge can effectively invalidate the contract by issuing an order of judicial precision. They can also help address non-performance and any damages caused by a prior breach.
Reviewing the language included in a business contract with a skilled legal team can help professionals determine if the agreement remains valid and what their next step should be. An attorney’s insight into a breach of contract dispute can help minimize the consequences of another party’s failures.