The average business executes contracts with an assortment of different parties. It is necessary to sign a contract when hiring new workers, reaching agreements with vendors or hiring a contractor to provide services. Typically, organizations expect that the other party to a contract will follow through on their obligations. Unfortunately, a small but noticeable percentage of business contracts end up breached by one of the parties. A contract violation can be both frustrating and expensive.
Organizations may incur numerous expenses and operational delays because of another party’s failure. Sometimes, businesses decide to litigate to resolve a contract dispute. What happens when a breach of contract matter ends up in the New York civil courts?
The judge has the authority to resolve the issue
In a breach of contract lawsuit, a judge will need to review the agreement between the parties. After affirming that the contract is valid and enforceable, the judge can then determine whether a breach actually occurred.
If it did, the judge will look at evidence of how that violation impacted the organization. Judges can take a variety of different steps to resolve a breach of contract issue. A New York civil judge could terminate the contract to end the working relationship between the parties and absolve the company of any obligations to the party in breach of the original agreement.
They also have the authority to award the plaintiff damages if the breach of contract caused verifiable financial losses for the organization. A judge also has the option of ordering specific performance. They can require one party to complete their contractual obligations or perform certain tasks that would correct or remediate the contract breach.
In a large number of cases involving a breach of contract lawsuit, the parties involved are able to reach a settlement before the matter goes to trial. The individual or business that breached the contract may remedy the situation or agree to pay damages to avoid litigation that could harm their reputation and put them at risk of even more serious consequences.
Seeking legal guidance to better understand what will likely happen when one party files a breach of contract lawsuit may help people pursue an appropriate resolution to a contract dispute.