Since businesses spend $870 billion annually resolving contract disputes, you’re far from alone when you need legal assistance. Deciding what to do if someone breaches a contract may sound daunting, but the common nature of this problem makes legal action a well-oiled machine.

Here, we’ll discuss next steps after a contract breach. Read on to learn how you can recover your dues when another party shirks on a binding agreement.

Determine the Type of Breach of Contract

“Breach of contract” is a broad term referring to when one party breaches a written agreement made with another party.

Contract breaches come in two forms. An actual breach happens when one entity refuses to carry out the contract. An anticipatory breach takes place when one entity says upfront that they do not plan to adhere to the contract’s terms after signing it.

Some breaches are minor while others are material.

A minor breach takes place when one party doesn’t deliver a good or service by the due date specified in the contract. For example, if a vendor enters a contract with a shipping company to bring branded boxes by within a certain timeframe, there is a minor breach of contract if they are late with the boxes.

A material breach takes place when one party delivers a good or service that differs from what was originally outlined in the contract. If the above vendor delivers boxes with incorrect brand information on them, they have engaged in a material breach of contract.

Review the Contract

To determine the type of breach and protect your contract rights, you’ll first need to thoroughly review the documents you’ve signed. This means:

• Carefully examining the document with a reputable Florida attorney
• Comparing the terms of the contract with its outcome
• Identifying the obligations of every party outlined in the contract
• Determining which specific obligations were unmet
• Documenting how the obligations were not met (whether they were completely unfulfilled, partially unfulfilled, or fulfilled incorrectly)

You and your attorney also should look over these documents thoroughly to best determine what to do if someone breaches a contract.

Once you have this information, you can work with a lawyer to document the exact breach.

During this step, a contract attorney will help you:

• Gather all important documents (including the contract)
• Find breach-related correspondence like emails or text messages
• Assemble a folder of financial records that show the breach had a material impact on you or your company
• Document any and all efforts any party makes to resolve the breach of contract

At this point, you and your legal team will have everything you need to pursue legal action in Florida.

What to Do if Someone Breaches a Contract: First Steps

To initiate legal action, the breach will need to have taken place within Florida’s statute of limitations. Those who want to sue for a breach of written contract will have five years to do so. If the contract was oral, the statute of limitations is only four years.

Assuming that your case falls within this timeline, you can initiate legal action.

The first steps after a contract breach involve formally contacting the party who did not follow the terms outlined in the contract. This notice will include information like:

• What specific terms the recipient violated
• The nature of the breach (actual or anticipatory)
• The type of breach you’re contending with (minor or material)
• Your desired course of action when moving forward

Sending this to the other party shows that you want to resolve the problem in the easiest and least financially damaging way possible. It’s a commitment to mutual conflict resolution.

Sometimes, discussing the matter with the party that violated the contract will be enough to resolve the problem. Some individuals and organizations don’t intend to violate the contract and may be unaware that they did so. In these instances, you may want to come up with a payment plan or other mutually-beneficial solution.

If this doesn’t work, though, you may need to take further legal action. Luckily, multiple avenues can help you recover damages after you suffer financially due to a breach.

Look Into Contract Breach Resolution Strategies

Since there are several contract dispute remedies available, litigation is usually reserved for the most extreme cases. This is because it’s time-consuming and costly. Usually, alternative dispute resolution will work for both parties and be more efficient.

Mediation is one of the best ways to resolve a contract-related dispute. During mediation, the parties involved with creating the contract sit down with a neutral third-party mediator. The mediator helps them have a conversation about the contract and assists with finding a mutually-beneficial solution.

Binding arbitration is similar to mediation, but it comes with a firm decision for the future. While mediators don’t make decisions and simply serve to facilitate productive conversation, an arbitrator hears both sides and makes an unbiased, legally-binding decision.

Non-binding arbitration is another option in which the arbitrator’s decision is merely advisory. If either party disagrees with it, they can pursue court litigation instead.

If none of these options work, litigation may be required.

Consider Litigation

Courtroom litigation takes place when all parties present their cases before a judge and jury. The court decides whether a breach of contract took place. They also decide on what subsequent actions the breacher must take if found guilty, such as a settlement amount.

Litigation can recover damages like:

• Liquidated damages based on the terms of the contract
• Consequential damages to cover losses that you may face in the future due to the breach
• Compensatory losses, which reimburse you for the losses you’ve already faced and proven

In other cases, the court may simply order the party that breached the contract to follow its terms.

Litigation can be challenging, but it is rewarding when needed. An attorney can help you navigate the complex process and recover your due.

Take Legal Action for a Breach in Florida

Now that you know what to do if someone breaches a contract in Florida, it’s time to begin recovering damages for your losses after a breach.

Boyer Law Firm is committed to helping you review legally-binding contracts and determine next steps based on your individual situation.

We’re excited to hear about your specific case, so contact us to schedule a consultation today.