Contract Negotiation:

After a Contract is Breached

In the aftermath of a breach (or alleged breach), one or both parties may want the contract enforced on its terms, or try to recover any financial harm that has been caused.  Informal attempts to fix a breached contract are often made, and depending on the type of breach and the amount of damage sustained by the non-breaching party.  If disputes over the contract continue, despite informal proceedings, the most common method implemented to resolve stalemates and ensure that the terms of the contract are enforced is through legal channels.  If the dollar-amount is below $3,000 to $7,500 (figures are entirely subjective to the state), the parties may utilize “small claims” court.

There are options outside the courtroom, for those who cannot settle on terms but want to avoid going to court.  Should both parties agree, a mediator can intervene and review the contract, hopefully bringing resolution to the dispute.  Another out-of-court avenue designed to ease breach of contract disagreements is a binding arbitration.  

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