What to Do When a Business Partner Breaches a Contract in California?

You may be unsure about what to do when a business partner breaches a contract in California. It is a good idea to understand what steps to take when this common business law issue arises. You should also strongly consider consulting with a qualified and skilled business litigation attorney about your case.

When to Hire a Business Lawyer for Breach of Contract?

A contract is an official agreement between two or more parties wherein each party agrees on what to do, not do, or pay according to the terms of the contract. A breach of contract occurs when one of the parties fails to uphold the contracted agreement. It is strongly recommended that you hire a business lawyer as soon as you have concerns regarding a breach of contract.

Between March 2020 and March 2021, more than 180,800 businesses opened in the state of California. Around 171,000 businesses also closed during this period, resulting in a net increase of 9,768 businesses total. No matter the type or size of your business, you are likely to enter into contracts with various parties, including partners. However, if a breach of contract occurs, it is important to understand the impact and how to quickly resolve the dispute.

If you believe your business partner may have breached a contract, here are some steps you can take:

• Review your contract agreement. To verify whether a breach of contract has occurred, you should review the terms and details of the agreement. Some contracts have a clause that says mediation or arbitration is warranted in the event of a breach. If the contract is vague or difficult to discern, you can review it with the help of a qualified California business attorney.
• Ensure your contract is valid. If it is verified that there has been a breach of contract and you wish to file a claim against the other party in civil court, the contract must be legally binding and enforceable. A lawyer can confirm whether your contract is a legally recognized business agreement.
• Take action in a timely manner. Many business contracts, such as a written agreement, have a statute of limitations to file a claim in the event the contract is broken. This means you should take legal action as soon as possible to ensure you do not run out of time to hold the other party accountable.
• Speak with a skilled business lawyer. You should consult a business litigation attorney who is qualified and experienced. A capable business lawyer understands cases like yours and can advise you on what steps to take next and, if necessary, represent you in any legal proceedings.

Business law and litigation matters in California are usually handled in civil court. For example, a contract dispute in the Roseville area would most likely be handled at the Santucci Justice Center. This legal venue is located at 10820 Justice Center Drive, Roseville, CA.

Work With Peterson Watts Law Group, LLP for Your Business Legal Issues?

California business laws and litigation processes can often be challenging to navigate on your own, especially when you are working to continue running your business as smoothly as possible. That is why you should entrust any breach of contract concerns to the capable legal professionals at Peterson Watts Law Group, LLP. Our attorneys have nearly seven decades of collective legal knowledge and can effectively guide you through every step of the legal process.

FAQs

What Is Considered a Breach of Contract in California?

In the state of California, a breach of contract occurs when one of the parties who agreed to a contract fails to uphold the terms of the agreement. This may be failing to meet a deadline, pay for or provide a service or product, or meet other conditions. If you believe a business partner may have broken a contracted agreement, you should consult a business law and litigation attorney as soon as you can to avoid further issues.

How Do You Resolve a Breach of Contract Matter in California?

There are multiple ways to potentially resolve a breach of contract matter in California. In many simple contract dispute cases, communication between parties can resolve the issue to everyone’s satisfaction. Many solid contracts outline how a breach of contract is to be resolved. When those fail, it is strongly recommended that you speak with a business law professional to determine which approach is most likely to be effective and result in a favorable outcome.

How Does a Business Lawyer Help With a Breach of Contract in California?

There are several ways that an effective and strategic business lawyer can help you when facing a potential breach of contract and similar business law issues in California. An attorney can conduct communications with the party suspected of breaching the contract, including reaching a resolution based on your goals.

Your business lawyer can also review any future contracts with potential breaches in mind. Ultimately, your lawyer is there to help you protect your business interests and avoid future risks.

How Long Does a Breach of Contract Take to Resolve in California?

In California, a breach of contract can take anywhere from a few months to a year or longer to fully resolve. Several factors can impact the timeline of resolving a breach of contract case, such as whether the parties can settle the matter outside of court or if the case goes to the litigation phase. Settlements out of court typically require less time to resolve than court litigation proceedings. Ask a lawyer about a timeline estimate for your case.

Speak With a California Business Lawyer

It is critical that you bring your concerns of a potential breach of contract to a legal professional sooner rather than later to reduce the risks to your business. Reach out to the team at Peterson Watts Law Group, LLP today to schedule an initial consultation with a knowledgeable attorney. We can answer your questions, assess your situation, and help you prepare for the next steps