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Four Strategies to Prevent a Breach of Contract

Business Lawyer Maryland

Guidance from a Business Lawyer Maryland Appreciates

Business Lawyer MarylandMuch of the time, both parties in a contract to have the best of intentions about upholding their end of the bargain. However, many factors can come into play that cause one or both parties to fail to perform their responsibilities. This can cause substantial financial losses for the non-breaching party. One way to resolve a breach of contract is to perform due diligence prior to signing. Below we cover four common ways a business professional can strive to prevent a contract breach on the part of either party. A business lawyer in Maryland can provide additional information and guidance.

1. Clarity of Wording and Language
Let’s say the other party that you wish to enter into the contract with does not speak the same native language as yourself. This can easily cause miscommunication down the line when one party states they did not interpret their roles in the same manner. Hire an interpreter, and make a copy of the contract in the other person’s native language to lessen the chances of confusion later in the relationship. Note that even if all parties speak the same language and the contract is written in that language, miscommunication and confusion can still arise. It may be in your best interest to hire a business lawyer in Maryland to review the contract before any parties sign it.

2. Realistic Ability to Follow in Accordance to the Contract
When people state they will be able to fulfill the duties described in the contract, they may not be realistic in their expectations. It is possible that they hope to fulfill their responsibilities but in fact are not able to do so because of personal or external reasons. Both parties should carefully consider whether or not they truly have the capacity to fulfill the contract. It is best to sign a contract with confidence, not with an inner fear that the contract cannot be fulfilled. In the event of a contract breach, a business lawyer in Maryland can suggest what the penalties should be if that occurs.

3. The Contract Does Not Break Any Laws
Any duties listed in a contract must follow all applicable laws and cannot include responsibilities that are illegal. If the contract is breached and subsequently taken to court, the court system cannot enforce a contract that is of an illegal nature. For example, a party cannot ask another to give up government mandated breaks during work, or complete a job task that breaks a safety protocol. Refrain from entering contracts like this, even when knowing it cannot be enforced in court anyway. A business lawyer in Maryland can review the contract to determine if any illegalities are included.

4. Research the Other Party’s Personal and Professional Reputation
Research the person or company with whom you want to enter into a contract.

  • Has this party been involved in a previous breach of contract lawsuit?
  • Do they have a history of not following through with an agreement?
  • Have they failed to pay previous workers for their work?
  • Do they seem trustworthy?
  • For the sake of due diligence, seek legal advice from a business lawyer in Maryland.

Take your time to consider the above suggestions, and do not feel pressured to sign on the dotted line until you are confident in doing so. If you have questions or concerns, do not hesitate to reach out to a business lawyer Maryland professionals recommend in similar situations.

Thank you to our friends at Brown | Gould | Kiely for their advice on the breaching on contracts.