A breach of contract can be incredibly disruptive for commercial real estate developers who manage much of their business through contracts and contract relationships. Because a contract breach can be so disruptive to their daily operations, it is valuable for commercial real estate developers to know what can be done when a contract has been breached.
Options when a contract has been breached
A contract breach occurs when one party to the contracts fails to perform their obligations according to the agreement between the parties set forth in the contract. The best option for dealing with a breach of contract depends on the situation and circumstances and the goals of the non-breaching party. Damages may be available in breach of contract situations. Options for handling a contract dispute can include:
- Demand letter – preparing a demand letter that reminds the breaching party of their obligations under the contract can be a good first step;
- Mediation – mediation can be an efficient way to resolve a contract dispute that allows a neutral third party to help the parties reach a fair resolution;
- Litigation – it may be necessary to take the breaching party to court to resolve the contract dispute which can result in monetary damages for the non-breaching party or other remedies, such as recission of the contract or an order to perform under the contract.
Winding up in a contract dispute is not fun for anyone which is why commercial real estate law resources may be able to help. It is beneficial to be familiar with contract remedies when a contract has been breached.