What is a Breach of Contract Negotiation?
A breach of contract is when one party who signed a legal agreement doesn’t fulfill their roles as outlined in the document. This can include not paying the other party or missing deliverable deadlines.
Although a breach might seem final and force the offending party to pay damages, it is possible to negotiate a breach of contract for more favorable terms, especially if it’s a minor breach.
Read the rest of this article to explore types of contract breaches, examples of breaches, how to negotiate them, and when to consult a lawyer for assistance.
What are Breach of Contract Types?
Some common types of contract breaches include a:
- Material breach. This is when the violation is significant. An example would be if one party in the contract fails to complete a core part of it.
- Minor breach. This is a smaller violation that might only violate one part of the contract instead of all of it.
- Fundamental breach. This is similar to a material breach because it’s significant enough to allow the other party to terminate the agreement immediately.
- Anticipatory breach. This varies from the other types of breaches because it is when one party lets the other know that they won’t be fulfilling their duties beforehand.
What are Common Examples of Breaches of Contract?
There are various ways in which a breach of contract can occur, such as:
- Missed deadlines. An example is if a vendor or contractor doesn’t complete their task by the agreed-upon deadline.
- Late or missed payment. This is when a party doesn’t pay for services.
- Low-quality performance. This is when one party delivers the wrong product or a service that doesn’t meet expectations.
- Subcontracting. If the agreement doesn’t allow subcontracting yet one party goes ahead and gives the task to a third party, this is considered a breach.
- Confidentiality breach. This is when an employee or other party shares sensitive information that violates their Non-Disclosure Agreement (NDA).
How Can You Negotiate a Breach of Contract?
You might want to negotiate a breach of contract, such as if you want to lower its expenses or settle the issue to maintain business relationships. Negotiation can also be a way to avoid time-consuming and costly litigation.
Here are some ways to negotiate a breach of contract.
Review the Contract
Before negotiating the breach, it’s essential to read through all the contract terms so that you fully understand them. Look at the duties and obligations that weren’t fulfilled, and look at what’s listed as processes for dealing with the breach.
Since contracts can be complex, you should consider hiring a lawyer for a legal review of them. Here are the steps to follow:
1. Go to the ContractsCounsel marketplace. ContractsCounsel is one of the largest online legal marketplaces where you can connect with reliable, vetted lawyers for contract review/drafting, and legal guidance.
2. Post your request for a legal review for free. Include a few details of what you require.
3. Wait for lawyer bids. You’ll receive multiple bids from lawyers on the platform who are willing to review your contract for a flat fee.
4. Review the lawyers' profiles. Check the lawyers’ locations, their years of experience, their field of expertise, and client ratings for previous projects completed on the platform.
5. After reviewing the lawyers’ profiles, select the best lawyer for your purposes and hire them.
Document the Breach Incident
You should collect all the documents that show proof of the breach, such as the original contract, receipts, invoices, emails between parties, and other records.
Have Open Discussions with the Other Party
Having direct and empathetic discussions with the other party can help you both to find solutions together. It can also help you to reduce the conflict so that it doesn’t escalate and cause more damage. Instead of pointing blame, consider how you can work together to resolve it.
Suggest Mediation
Instead of going to litigation, which can be a stressful process for both parties involved, you should consider going to mediation. This involves hiring a neutral, third-party mediator who will listen to both parties during discussions and encourage them to come up with creative solutions to the problem.
Try to Mitigate the Damages
You should try to find ways to reduce the damage caused by the contract breach. This can include resolving to fix the issue within a specific deadline or providing partial compensation to show good faith. Even if you can’t commit to the full obligations, doing what you can will help you to avoid major losses.
Discuss Invalid Damages
The damages being claimed might not be valid, so you should challenge them. You could explain how some costs seem inflated or the losses have come from other situations instead of your breach. This is where having a paper trail of what happened can help you.
Seek Legal Guidance
Hiring a lawyer can help you to navigate a breach of contract negotiation. Here’s how.
- Lawyers have experience with sensitive contract breaches and will be able to skillfully negotiate to find solutions.
- They’ll assess your situation and consider how strong your case is, as well as if it’s valid.
- They’ll review and interpret the contract, unpacking legal or complex language.
- They’ll use their knowledge to help you know when to push back and settle during negotiations.
- They’ll prevent you from making mistakes during discussions.
- They’ll assess damages, such as by calculating what’s reasonable to recover.
- They’ll help you to keep the situation out of court.
- They’ll help you to settle and get everything in writing so there are no loopholes or risks.
Where Can You Find a Lawyer for a Breach of Contract Negotiation?
If you’re dealing with a contract dispute, you should contact a lawyer who’s experienced and reliable. On ContractsCounsel, all lawyers on the platform are skilled at negotiations and have experience with assisting clients to navigate the contract breach discussion with the other party.
On the ContractsCounsel platform, you can find a lawyer based on various factors, such as their level of experience, field of expertise, client ratings, and other research that’s conveniently on the marketplace for you to use.
Their transparency makes it easy and simple to find a lawyer who is aligned with your legal needs and negotiation goals.
