Many business lawsuits involve disputes over contracts. Business leaders sign contracts to clarify the terms of working relationships and make them enforceable. While most people who sign contracts make a good-faith attempt to fulfill their obligations, breaches/defaults can be a common occurrence.
Contract breaches can involve failing to deliver materials, quitting a project halfway through, disclosing private information to outside parties, failing to meet specific standards, or commonly, failing to pay amounts owed. When a breach of contract occurs, a lawsuit can help businesses address the impact of contract violations.
What outcomes can civil courts in California offer plaintiffs harmed by a breach of contract?
1. Contract rescission
Continuing a working relationship after a breach of contract is not always the best option. A judge may order a contract rescission, or cancellation, to terminate the contractual obligations of both parties.
2. Ordering the payment of damages
Contract violations can force companies to redo work, make last-minute purchases from more costly vendors or undermine the usefulness of the organization’s trade secrets. Plaintiffs filing breach of contract lawsuits can request damages based on the provable economic impact that the breach of contract generates.
3. Injunctions
Civil court judges can issue injunctions to resolve breach of contract disputes. Injunctions generally prohibit certain conduct, such as unfair competition or the release of private information. In some cases, injunctions can require that one party perform specific acts to remedy a contract dispute.
Seeking one or more of the aforementioned solutions through business litigation can help diminish the harm caused by a significant breach of contract. Businesses should seek the advice of experienced business counsel to advise more specifically on what relief courts can provide so they can make a well-informed decisions on how to address a contract dispute.