Top 10 Reasons to Not Breach a Contract

Dariush G. Adli

Written by

Business Attorney

Contributor Level 11

Posted over 1 year ago. 2 helpful votes

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1

Reputation

If you have breached a contract a black mark will be on your company's permanent record. Word will spread that you have been unable to fulfill your end of the bargain in a contract.

2

Relationships

If you have breached a contract with another business or partner, you have put a strain on that future relationship. Multiple offenses may even get your business banned from some service providers.

3

Legal Action

Breach of contract is easily grounds for a lawsuit.

4

Time

When you have breached a contract, it takes time and effort spent away from your business to deal with the legal ramifications of your breach.

5

Money

Breaching a contract often results in unnecessary fee spent on legal services that otherwise would not be required.

6

Performance

Depending on the nature of the contract, you may be ordered by the court to perform your obligations under the contract.

7

Contempt

You could run the risk of disobeying court orders, if you are assigned specific actions, which you neglect to undertake.

8

Compensatory Damages

The court may force you to pay compensatory damages to the other parties involved to recover the money they lost as a result of the breach.

9

Punitive Damages

You may also have to pay punitive damages in excess of the losses reported by the other party for their inconvenience.

10

There is Nothing to Gain!

Breaching a contract ultimately results in lost time, effort, and money on your behalf. No matter what duties you are attempting to get out of in the contract, you almost always end up creating more hassle for yourself than had you just complied with the terms of the contract.

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