You have entered into a contract with a friend, or someone from the family. Now they’ve breached the contract.
That queasy stomach feeling? It’s real. Contract non-compliance hurts your bottom line and trust in people. Yet you are not helpless here though.
What Is a Contract Breach Notice?
Consider it your official means of saying “Hey, you screwed up.” It is a document that is in writing which informs the other that they have not held up their part in a bargain.
This is not being mean. It is about self defense.
The notice serves three key purposes:
- Documents the problem
- Gives them a chance to fix it
- Starts the legal clock ticking
Signs You Need to Send One
Sometimes it’s a no brainer. They didn’t deliver at all. They defaulted on payment. They hired your competitor you were exclusive to before they signed a non-compete.
In other cases, it is vague. Perhaps they are skimping on quality. Oh, perhaps they are always late and still delivering. The gray areas generate suspicion.
Ask yourself one question: Would a reasonable person say they breached the contract? Yes, it is, document it.
What to Include in Your Notice
Be specific. Never say: “you have breached our contract.” Rather, state that you did not produce 500 units by March 15th as explained in Section 3.
State the facts. Avoid the melodrama. Avoid the wrath. All you need to do is tell them when it happened and what.
Reference the contract. Cite the specific section they have broken. Make it perfectly clear.
Set a deadline. Allow them time so that they correct the situation. Typically 10-30 days is enough. Be fair, yet assertive.
Explain consequences. Will you end the contract? Seek damages? Find another? Tell them.
The Emotional Side Nobody Talks About
It is terrible writing up these notices. You doubt yourself. Perhaps you are hard on the matter. Perhaps there was something you misinterpreted.
That doubt can cause you to freeze. However, do not forget why you have signed the contract in the first place. And you both have made a term-agreement for a reason.
Relations in business are important. You may be scared of burning bridges. In some instances that is a legitimate worry. However by allowing people to walk on you, you do not make bridges worth making.
What are the consequences of a breach of contract?
In case the court finds you guilty of violating a contract, the court will proceed to direct you to pay the other party damages. Damages will be based on the nature and gravity of the breach and the extent to which the other party has lost due to this breach. You can also be required to cover the legal fees of the other party in some situations.
How do you deal with breach of Contract?
A breach of contract may be solved after examining the terms of the contract to ensure there is breach and the remedies thereof. The sides can resolve the conflict by negotiations, mediation, or arbitration before resorting to litigation.
Common Mistakes to Avoid
Don’t wait too long. There are contracts that have cure periods. Get out of time and you may forfeit your rights.
Don’t make it personal. Attack not the person but the action. Being unreliable is better said as you always miss deadlines.
Don’t threaten what you won’t do. When you say that you will cancel the contract, then be prepared to do it.
Don’t skip the paper trail. Have it sent by certified mail. Keep copies. Document everything.
Moving Forward
Sending a notice of breach does not imply the termination of the relationship. A high number of conflicts are also solved at this phase. Human beings are prone to distress. Circumstances change.
Yet you have put your foot down. Time and trust, you said, are valuable to you.
This is what the relationship sometimes needed.
Writing the notice is not the most difficult bit. It seems to be a decision to be worth fighting about. You are.
