Many Oregon companies conduct a large portion of their business through contracts. When all parties follow the terms in their contracts, things tend to go well. Unfortunately, an anticipatory breach can occur when a promisor states they won’t honor their contractual obligations. If you’re dealing with an anticipatory contract breach, here are several ways to resolve this problem.
Taking legal action
If someone goes back on promises made in contracts, it can become quite costly for a business. Considering that, many companies take legal action against parties that breached contracts. Pursuing legal action allows you to potentially receive damages from a contract breach. Before you decide whether to make this breach a business law matter, it could be wise to schedule a consultation with an attorney.
Canceling the contract
Another possibility to consider when an anticipatory breach occurs is to cancel a contract. Most companies choose this option when operational errors are the main factors in an anticipatory breach. In some cases, canceling a contract is the best option for companies that want to quickly move forward after a breach occurs.
It’s also possible to do nothing when someone doesn’t honor their obligations. In most cases, this course of action happens when there’s a good relationship between the parties involved in a contract. By declining to pursue any legal action against the breaching party, you can keep your company’s relationships strong.
As you can see, your company has several options to consider in the wake of an anticipatory breach. If you’re unsure how to proceed with an anticipatory breach, it could be in your best interest to speak with a business law attorney.