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What is breach of contract and how should it be handled?

Business owners of both large and small businesses in Colorado know that everything will run smoothly as long as their business partners comply with what is written in their business contracts. However, in the real world, anything can happen. Unexpected occurrences can cause either partner to fail to meet the terms of the contract, resulting in a "breach of contract."

Under business law, failure to meet the obligations indicated in the contract is defined as breach of contract. A contract is breached when one party fails to perform or comply with the terms of the agreement, fails to perform the assigned tasks on time or fails to comply at all. For example, if one of the partners creates a business agreement with one of the suppliers and that agreement clearly states the supplier has to deliver the needed items on a particular day and then fail to deliver, it can be considered a breach of contract. Failure to comply with the agreement can result in significant financial losses for the business.

When a contract is breached, one way to resolve the issues is by speaking with the other party involved. The business owner must continue to consider the importance of the other party involved in the contract. By discussing the issues, both parties can prevent a costly litigation that will result in monetary damages.

In a case where the breach of contract results in significant losses to the business, the business owner may wish to consider filing a legal complaint against the other party. Since this blog post cannot provide specific legal advice, it is important to learn all of the legal options available before filing a legal complaint to prevent consequences that could harm the business.

Source:, "'Breach of contract' and lawsuits," accessed on Aug. 14, 2014

Source:, "'Breach of contract' and lawsuits," accessed on Aug. 14, 2014

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