Nonperformance, or failure to perform on a business contract is considered a breach of contract, and can result in time consuming and expensive litigation.  What should you do if you are concerned about non-performance or poor workmanship on one of your business contracts?  Can you force them to perform the services or provide the quality of product specified in the contract itself?

In California, and here in San Diego it is usually not possible to force a party to perform on a contract unless the issue involves real estate.  The issue is going to be measured in “damages” – the financial consequence of nonperformance, or failure to perform on a business contract.  Is the issue poor workmanship?  If so, did the contractor use lesser quality materials than those specified in the agreement, or is the issue the quality of the work itself?  Did the other party in the contract promise to perform a specific service or provide a product by a certain date and fail to do so?

The Watkins Firm employs a unique approach to resolve contract disputes which is specifically designed to manage the process in a cost-effective and timely manner.  We work to quickly and thoroughly document the chronology of events and associated damages.  These are tools that allow us to gain the attention of opposing parties and draw them into effective, leveraged negotiation.  The Watkins Firm is able to resolve the majority of our nonperformance and breach of contract cases through effective, leveraged negotiation.  This is the fastest and least expensive path to resolve any of these disputes.  We also represent clients in lawsuits, business mediation, arbitration and at trial.

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.

For example, in a material breach, the non-breaching party no longer has to obey the terms of the contract.  That option is part of 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 damages. 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, because it’s that important. And 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

Nonperformance, or failure to perform on a business contract is a viable legal case, and the lawyers at the Watkins Firm have decades of experience in these cases.  The party who did not breach the contract has responsibilities as well, such as mitigating the damages that arise from the failure to perform.  If you have been accused of failure to perform on a contract, or have suffered due to the non-performance or poor workmanship of another party or contractor 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.