Smart Strategies For High-Stakes Situations

Your options when a partner accuses you of a breach of contract

On Behalf of | Aug 10, 2023 | blog, business litigation

As an entrepreneur, contracts likely form the basis of all your most important business relationships. If you choose to go into business with a trusted partner, then the contract you share with that partner might just be the most crucial yet sensitive of them all.

A partnership agreement should outline the rights and responsibilities of each partner, and any overstep of those boundaries might constitute a severe breach of contract that may threaten the entire business. If your business partner accuses you of such a breach, it is important to know your options so that you can defend your reputation and livelihood.

Defending yourself against a breach of contract claim

The foundation of any breach of contract defense is your ability to prove that you performed your part of the contract without infringing on your partner’s rights. Thorough documentation and recordkeeping throughout the everyday aspects of running your business can help ensure that you have evidence to support your case. Alternatively, you might seek to prove that your partner is guilty of either misinterpreting the contract or committing a breach themself.

Protecting your business during a dispute

A dispute regarding a potential breach of contract might breed some resentment, but you can turn to mediation or arbitration to resolve the dispute and keep the business going amicably. Your partnership agreement itself might outline a mediation process or procedures you and your partner can follow to maintain a professional relationship even if your personal feelings are no longer the same.

There is an unfortunate possibility that your business relationship will be irreparably damaged following the accusation of a breach of contract. Even so, you have options for defending yourself against the accusation and attempting to keep the business running as normal.