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Why You Should Never Breach your District of Columbia Contract

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A contract involves an agreement between multiple parties, which can be other individuals, companies, or legal entities. The contract will require both sides to perform specific conditions, or refrain from performing specific acts. As a business owner in Washington DC, you will be making numerous contracts as part of your day-to-day operations. You may be tempted to breach a contract if you feel the other side is not doing what you want or expect, but breaching a contract could hurt your business — more than just financially too.

If you are having issues with an existing business contract or you feel the other side is in breach, contact a knowledgeable Washington DC business lawyer who can advise you on your legal options first. In the meantime, here’s a look at some of the reasons you don’t want to breach a contract. 

It Could Ruin Your Business Reputation

Especially if you are a small business owner, breaching a contract could tarnish your reputation in the local business community. It could also hurt your image as an individual as well. You don’t want to develop a reputation as a business (or person) that others want to avoid because they decide to breach their contract when something doesn’t go exactly right.

Could Lead to Litigation

One of the most obvious risks with breaching a contract deals with the potential for litigation. If you breach the contract because you now aren’t happy with some of the contract’s terms, you could be facing litigation from the other side who pursues a breach of contract claim against you.

Takes Away from Your Business

If you are busy dealing with a breach of contract claim, that’s time taken away from your business. You are not only distracted while at your business, you will need to take off a lot of time for various court appearances and hearings, including depositions and possibly a mediation or arbitration hearing.

Added Legal Costs

If you breach a contract and need someone to defend you, you could be expending a lot in legal fees and costs trying to defend your business. If you went to an attorney beforehand, you might’ve been able to renegotiate the contract terms or figure out your legal options before facing costly defense costs.

You Could Be Paying Additional Damages

In addition to paying compensatory damages for a breach of contract, you could be paying consequential damages as well. The award is designed to put the non-breaching party back in the position they would’ve been in had the breach not occurred.

Defending a Breach of Contract Claim

If you do need legal assistance because you are being presented with a breach of contract claim, there are some defenses available depending on the circumstances. You may be able to argue that the contract is not enforceable because it’s very unbalanced and clearly favors the side with the most bargaining power. This leads to some small businesses being taken advantage of.

To find out more about other defenses to a breach of contract, contact the Washington DC business law attorneys at Tobin, O’Connor & Ewing at 202-362-5900 today to schedule a consultation.

https://www.tobinoconnor.com/pros-and-cons-of-starting-an-llc/

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