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The Top Four Mistakes to Avoid If Your Company is Being Sued for a Breach of Contract

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Contracts form the foundation of many modern commercial relationships. A contract is a legally binding agreement. A party can be sued for damages caused by a breach. Facing a breach of contract lawsuit can be stressful and frustrating. A proactive approach is key. Too many companies make errors in the early stages of litigation. Here, our West Palm Beach commercial litigation attorneys highlight four all-too-frequent mistakes that you need to avoid if your business is being sued for a breach of contract.

Mistake #1: Ignoring the Breach of Contract Lawsuit 

A business in Florida should never ignore a breach of contract lawsuit—even one that is wholly frivolous. Doing so is a big mistake for any company. When you receive notice that a lawsuit is being filed or that one may be filed in the near-future, it is important to take proactive measures.

At the absolute worst, ignoring the entire legal process could result in a default judgment against your company. That would give the counterparty a very powerful collection tool. Even if you do eventually respond, the delay of action will undermine your interests.

Mistake #2: Failing to Retain and Organize Your Supporting Evidence 

Breach of contract cases are highly fact-intensive. Who will prevail in a dispute in court? It depends entirely on the evidence that the parties are able to present. A common mistake is underestimating the importance of organizing supporting evidence. Effective defense in a breach of contract case hinges on your ability to present clear, relevant, and well-documented evidence. Be sure to gather/organize all contract-related documents, records, and communications.

 Mistake #3: Waiting to Long to Consult With a Contract Litigation Attorney 

Contract law is complicated. The right attorney on your side can make a big difference. You do not want to wait to seek professional legal counsel. Your Florida breach of contract lawyer can review your case, answer your questions, and help you determine the best course of action to protect the best interests of your business.

 Mistake #4: Assuming the Best Strategy is Always a Legal Fight 

Assuming that a legal fight is the only solution can be a costly mistake. Litigation should be a last resort, not the first response. Exploring alternative dispute resolution methods like mediation or arbitration can be more efficient and less expensive. Avoiding litigation in a breach of contract case can be especially useful if you want to try to preserve the commercial relationship with the counterparty. There may be a way to resolve the matter to everyone’s satisfaction.

Contact Our South Florida Breach of Contract Attorney Today

At Pike & Lustig, LLP, our Florida breach of contract defense lawyers are committed to putting the needs and interests of our clients first. If your company is being sued for an alleged contract breach, we are here to protect your rights and interests. With an office in West Palm Beach and an office in Miami, our firm serves businesses throughout all of South Florida.

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