Video: What Should a Business Do After a Breach of Contract?

When someone is not abiding by a contract, that is a breach. The beauty of a contract, a written contract, is it allows both sides to clearly understand what their obligations are. When a contract is not in writing, it can be subject to various interpretations. Oral contracts are recognized in California. Oral contracts are never advised because anytime there's an oral contract, later on if there's a problem, anyone can say anything about what was said. We're in the time and age when words are being recorded everywhere whether you like it or not but nonetheless there's never going to be a replacement for a written, clear contract because it allows the parties who are entering into it freely, to know what they're supposed to do and if someone doesn't do what they're supposed to do, they know what can be done to them. In a situation where a party is threatening to breach a contract, that is what we refer to as an anticipatory breach. Depending on the situation, there's a variety of things that the non-breaching party can do in response to such a breach. You can take action immediately upon sensing that there may be a breach to best protect your rights as a business owner or as an individual. For more information about business law in San Diego, go to PurdyBailey.com.