Business Contract Lawyer
When you own a business, you will probably enter into multiple contracts with vendors, employees and other parties throughout the years. It is important to adhere to the terms of each contract so that you do not face harsh penalties. A breach takes place when one or both parties does not perform their part of the contract.
Here are some of the consequences of breaching a business contract.
Your Business May Get Sued
If you do not fulfill your part of a contract, the other party may file a lawsuit against your business. Fighting a lawsuit can cost your business thousands of dollars in legal fees. Some companies can even go out of business if their legal fees become too high.
You May Strain Business Relationships
If you do not follow through with your end of a contract, word can spread fast. Other businesses may find out that you breached your contract and lose trust in you. As a result, they may never agree to do business with you.
You May Tarnish Your Company’s Reputation
No matter what type of business you run, having a good reputation is crucial. People are more likely to trust businesses with good reputations and buy their products or services. If word gets out that your business is facing a lawsuit, customers may lose faith in your company, causing your sales to plummet.
You May Have to Spend Time Away from Your Business
If you are sued for breaking a contract, you may have to respond to discovery requests and attend depositions, which can be very time-consuming. Instead of focusing on your business and helping it grow, you will be forced to take valuable time away from it.
Your Health Could Suffer
When your business is facing a lawsuit, it can cause you a great deal of stress. Unfortunately, too much stress can take a toll on both your physical and mental health. Health effects of excess stress may include high blood pressure, headaches, digestive issues and chronic pain.
Avoiding Breaching a Contract
The most effective way to avoid breaching a contract is to consult an experienced business lawyer before signing a contract. A business contract lawyer, like one from Carpenter & Lewis PLLC, can review your contract and make sure that it reflects your best interests and give you solid legal advice.