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Can I Sue A Business Partner For Breach Of Contract In Florida?

BreachofContract

Contracts are at the basis of most important commercial relationships. Parties are expected to live up to their promises. A breach of contract can cause serious financial harm to you and your business. It can be especially frustrating (and damaging) if that breach of contract comes from one of your own business partners.

This raises an important question: Can I file a breach of contract lawsuit against a business partner? The answer is generally ‘yes’—at least assuming you have a valid agreement and grounds to file a breach of contract claim. Here, our West Palm Beach partnership dispute attorneys explain the key things to know about suing a business partner for a breach of contract in Florida.

Non-Breaching Party has the Right to Take Legal Action 

Contracts are enforceable, legally binding agreements. A breach of contract is defined as a “violation of a contractual obligation.” The non-breaching party has the right to hold the breaching party liable for damages related to a violation. The rules are no different for contracts between business partners. You have the right to take action to hold a business partner liable for damages related to a breach of contract.

Note: In some cases, contracts will require mandatory arbitration instead of allowing for a lawsuit. Forced arbitration clauses can be enforced in Florida. If you have any specific questions about mandatory arbitration provisions in Florida, our partnership law attorneys can help.

The Partnership Agreement is Often the Contract in Question 

In most breach of contract disputes between business partners, the contract in question is the partnership agreement. A partnership agreement is a legally binding document in Florida. You may have a breach of contract claim in regards to your partnership agreement if:

  • A business partner violated one or more binding terms of the contract; and
  • You (or the business) suffered actual financial harm related to the breach. 

Litigation May Not Be the Best Option for a Contract Dispute Between Partners 

Business partners often have some mutual, overlapping interests—even if they are locked in a serious dispute. For this reason, mediation and other forms of alternative dispute resolution (ADR) are often reasonable approaches in partnership disputes.

Of course, there are also plenty of exceptions. If you are dealing with a business partner who has violated their obligations under an agreement and refuses to cooperate with you, commercial litigation in the form of a breach of contract lawsuit may be the best course of action. 

Do You Have Questions About Partnership Disputes?

We are available to help. At Pike & Lustig, LLP, our Florida partnership law attorneys are devoted to top quality, solutions-driven guidance and support. If you have questions about suing a business partner for breach of contract, our firm is your resource. Call us today for your private consultation. From our law offices in West Palm Beach, Wellington and Miami, we serve clients throughout Florida, including in Miami-Dade County, Broward County, Palm Beach County, and Martin County.

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