How to Reach Settlement in a Breach of Contract

How to Reach Settlement in a Breach of Contract - Dispute Lawyer

Are you searching for answers on how to reach settlement in a breach of contract? The Watkins Firm has more than 40 years of experience resolving business disputes such as a breach of contract while accomplishing our client’s goals and objectives.  The good news is the Watkins Firm is able to resolve the vast majority of our breach of contract cases through effective, leveraged negotiation.  This is the fastest and least expensive path to resolving any business dispute or breach of contract case.

Our experienced attorneys work to develop a thorough, well-documented chronology of events and a mastery of the damages associated with the contract breach.  These are the tools that allow us to draw opposing parties and their counsel into productive negotiations and resolve most matters.   Often this involves negotiating simple agreements between the parties which identify the issues leading to a breach of contract, the impact of these issues and the steps the parties agree to take to resolve the issues at hand and complete the relationship or transaction or provide fair compensation for what has happened.

Other Legal Strategies to Reach Settlement in a Breach of Contract

If negotiations are not able to completely resolve every issue allowing the parties to reach settlement in a breach of contract the next steps can make a substantial difference in the outcome of the case.  When a breach of contract occurs several legal issues immediately come into play.  The party who is the victim of the breach has the legal obligation to take timely, prudent and reasonable action(s) to reduce or mitigate the damages associated with the breach.  The failure to do so provides the breaching party with a strong potential defense in a breach of contract which can limit the financial damages associated with the ultimate resolution.

There may be genuine issues in dispute between the parties which inform a decision to consider business mediation and/or arbitration.  Mediation is a confidential, non-binding environment where the parties work with a neutral third party to resolve any issues which could not be ironed out in negotiations.  Arbitration is a much more legally structured venue, but ensures a prompt and definite conclusion to the matter.

Dan Watkins Founding Partner of the Watkins FirmPro-Tip: “Do we have a minor breach or a material breach? 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 force the performance of the contract. All of these things have amazing consequences, if you look at factual situations in breach of contract law.

There is 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, are much less.  The primary remedy for a breach of contract is the recovery of financial damages.” – Dan Watkins, Founding Partner

Negotiating settlement of a breach of contract requires legal skill, business savvy, and experience. 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.