Hoegen & Associates, P.C. Can Help You Avoid a Breach of Contract
The last thing your company wants to deal with is a breach of contract lawsuit. This problem may seem easy enough to avoid—just stick to the contract. But it isn’t always so easy. The finer details can slip through the cracks. Situations may change, without the contract adjusting to those changes. When you are working on a project, it is essential that your contracts are clear, up-to-date, and completely understood by all involved. Otherwise, you might have a nasty lawsuit on your hands that could have been avoided.
At Hoegen & Associates, P.C., located in Wilkes-Barre, PA, our attorneys have years of experience working with commercial clients in drafting comprehensive contracts. We have also helped clients through countless contract dispute lawsuits, so we understand what it takes to avoid these issues.
What Types of Contracts Need to be Updated?
Any contract involved in your project should be regularly updated. At our firm, we most often work with cases involving agreements such as:
- Customer/client agreements
- Suppliers or service provider agreements
- Real estate agreements and commercial leases
- Operating agreements, partnership agreements or shareholder agreements
- Loan documents/financing agreements
- Buy-sell agreements
- Employment agreements
- Distribution agreements
- Master service agreements
We are especially experienced in issues regarding the Marcellus Shale project. As a large project that has a lot of interests involved, situations are constantly changing, and we work with clients in ensuring their contracts are adjusted as needed.
What is a Breach of Contract?
A breach of contract is any promise documented in the contract that a party involved fails to keep. There are several types of breaches of contracts, including:
- Minor or partial breaches
- Usually doesn’t result in a lawsuit
- Material breach
- This is a significant breach that often results in a lawsuit
- Fundamental breach
- A breach so severe that the contract is usually terminated. Usually results in a lawsuit
- Anticipatory breach
- A breach committed before the end of the contract terms. A lawsuit can still ensue
Breaches of contract often result in contract disputes which involve legal action.
What are the Consequences of Breaches of Contract?
Possible consequences include:
- Default event: If an essential component of the contract has been breached, this often results in a termination of the contract
- Time and money wasted for all parties involved
- A civil lawsuit against your company
- Loss of trust in your company
- Serious detriments to your project—the timeline may be significantly extended, or the project may be impossible to complete
How Does Updating a Contract Avoid a Breach?
Things change. But if they do, the contract needs to change, too. All updates should be discussed, agreed upon, and signed by all parties involved. You shouldn’t be using the same contracts or terms you used for projects or clients even a couple of years ago. Our team can work with you to keep your company’s contracts up-to-date. This process is much easier than having to handle the time, stress, money, and reputation damage that comes from a breach of contract lawsuit.
Hoegen & Associates, P.C. has the experience you can depend upon for all issues regarding contracts and contract disputes. For more information, or to schedule a consultation, contact us today at 570-820-3332. We look forward to working with you.