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What is ‘breach of contract’ in business litigation?

On Behalf of | Mar 24, 2016 | Contract Disputes


Most businesspeople in Louisiana are good at what they do — that is what makes them successful. However, that doesn’t necessarily mean that they are experts in every aspect of owning and operating a business. Business owners may run into issues where they need a bit more information, such as when they are part of contract disputes. In these types of situations, the parties involved may be throwing around the legal term “breach of contract” a lot. But, our readers in Louisiana may be thinking, what is “breach of contract,” and how will it impact business litigation?

First, understanding the obligations of the parties to a contract is important. In a contract, the various parties involved make commitments to do certain things. For example, they may agree to pay a certain amount at a certain time or complete a certain task at a certain time. When a party does not do what they are supposed to do when they are supposed to do it, they are violating the obligation they have committed to in the contract. That is a breach of contract, in legal terms.

For a company in Louisiana to operate smoothly, there can’t be any delays or problems that impact the day-to-day business model. A business may depend on vendors or suppliers so that the service or goods that the business offers to consumers is available like it should be. A contract dispute over a breach of contract has the potential to bring business operations to a grinding halt.

Fortunately, businesses in Louisiana that are dealing with a breach of contract issue have options. If the problem cannot be resolved privately between the parties to the contract, litigation may be necessary in order to either compel performance of the contract terms or compensate the wronged party for the breach. Since this post cannot replace legal advice for any one person’s situation, it may help to consult with an attorney if you have questions about breach of contract.

Source: FindLaw, “‘Breach of Contract’ and Lawsuits,” Accessed March 19, 2016