Are you searching for an experienced California business dispute resolution law firm to defend accusations of a breach of contract dispute?  If you have not been able to fulfill contractual obligations and are concerned about defending your business against a breach of contract lawsuit you need immediate legal advice and counsel from the proven breach of contract attorneys at the Watkins Firm.  In our decades of service to San Diego businesses we have helped to defend hundreds of breach of contract allegations, and protect their interests.

3 Key Takeaways in a Business Breach of Contract Defense:

• each party to a contract has specific obligations and responsibilities to fulfill.
• if one of the parties to a contract will have an issue completing any part of their responsibilities under the agreement, they should take actions to help reduce the impact on the other party.
• the party who has not breached a contractual agreement still maintains an obligation to “mitigate the damages” associated with any potential contract breach.

Each Party in a Breach of Contract Has Obligations Under the Law

All of the parties in a breach of contract have legal responsibilities under California law.  For example, the company who is the victim of a breach of contract is required to do everything possible to “mitigate” the damages they will experience as a result of the breach. This requires timely, prudent action to reduce the potential for financial damages which might arise as a result of the situation.  The failure to mitigate the damages can preclude part or all of their legal claim for relief.

If a party is unable to fulfill their obligations under the contract it is prudent to take immediate action to limit the damages of the other party.  There are always alternatives to defend accusations of a breach of contract while seeking to resolve any challenges which might have arisen.  This is especially true when unanticipated circumstances beyond your control (such as supply chain issues or the loss of a key employee) have challenged your ability to fulfill contractual obligations.  It may be possible to negotiate different terms or scope of work to resolve a contract dispute while allowing both parties to move forward and accomplish as much as possible.

Pro-Tip: “A minor breach means that you still have a contract. You still have an agreement and you can demand performance, or you can demand that you have to give less performance on the other side, but yet the contract isn’t completely breached and it’s not over. A material breach gives you more remedies, remedies that are important and may sound minor today. But there’s been many a situation where having a material breach gives the party who was breached or damaged the right to rescind the contract or the right to specific performance, and forced the performance of the contract. All of these things have amazing consequences, if you look at factual situations in breach of contract law.

In a material breach, the non-breaching party no longer has to obey the terms of the contract. That’s what’s called ‘choice of remedies’ in a material breach. The person who’s been damaged by the breaching party has all kinds of choices they can make. And depending on the kind of contract, the subject matter of contract, whether it’s a real estate contract or a commercial contract, they have the right to choose through a whole list of remedies, including provisional remedies and the list goes on and on. This is as opposed to a minor breach. Whereas your remedies are much less numerous.

The primary remedy for a breach of contract is damages. That’s a term a lot of people don’t understand. What are damages? Great question! When I advise my clients, I tell them the most important item in litigation is not whether you are liable or they’re liable, or somebody breached. I say the three most important things in a lawsuit are: damages damages damages.

And I say, it just like, you know, ‘location, location, location in real estate’, because it’s that important in the type of damages you can obtain are so varied that if you focus on whether you’ve been damaged under the law, there will be a statute or a case that says you are entitled to those damages. So if you track it backwards from ‘I lost a hundred thousand dollars in this deal’ and how you lost it on those facts and what you did lose, you’ll probably find 99% of the time, a statute or a law or a case or something that gives you a remedy, a right to those damages and how you can collect.” – Dan Watkins, Founding Partner

The Watkins Firm Will Defend Your Position in a Breach of Contract Case

The Watkins Firm will defend accusations of a breach of contract and work to resolve the situation, or provide the time you need to fulfill the contract.  It may surprise you to learn the vast majority of breach of contract disputes are resolved through effective, leveraged negotiation.  Watkins Firm attorneys work to find common ground, create a more positive atmosphere and identify solutions that will help to cure the breach of contract or negotiate another solution or settlement.  We work to understand our client’s business objectives in the case, their position in the breach of contract and develop the best strategy to successfully resolve the resulting dispute.

Business litigation is time consuming and expensive, and most business professionals understand the importance of negotiating a solution and moving forward.  When negotiations are unsuccessful the Watkins Firm represents our clients in mediation and/or arbitration.

We invite you to review our podcast Episode 5 – Breach of Contract as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.

Learn more about how the Watkins Firm can help your San Diego or California company to defend accusations of a breach of contract.  Our unique approach to contract disputes is specifically designed to resolve the situation while accomplishing your goals in a timely and cost-effective manner.