If you are facing a breach of contract lawsuit, it is essential to recognize what is at stake and identify the best course of action. These lawsuits carry various repercussions, from financial penalties to court-related stress and damage to your firm’s reputation.
Some business owners find themselves in court over false allegations of breaching a business agreement, while others do not know how to protect their interests in court. Make sure you carefully review all options on the table, gather evidence and prepare your defense strategically.
Breach of contract suits and negotiation
When it comes to a lawsuit centered around the breach of a business contract, there are different ways you can handle the case. According to the Sacramento County Public Law Library’s website, some people attempt to negotiate a settlement with the other party. If you are able to reach an agreement with the other party, ensure that you document the agreement in writing. Moreover, recognize that these negotiations do not immediately put an end to litigation.
Your response to a breach of contract case
If you want to defend yourself against the allegations, filing a response is necessary. In California, you have 30 days to file a response after the date you received the papers (or 40 days if a substituted service sent the documents to you).
Sometimes, people choose not to file a response because they do not have a valid defense, resulting in a default judgment. However, once the case enters default, you do not have the ability to defend yourself and the court will not take your input into consideration.