When you’re a small business owner, you plan for the future of your business by creating contracts. You contract with vendors, suppliers, insurance companies – with all kinds of businesses and corporations. Creating a contract means you’ve negotiated up front for exactly what you need, when you need it.
If someone has failed to live up to his or her contractual obligations with you, you’ve likely been left scrambling to fix the damage through no fault of your own, despite doing what you could in advance to protect yourself.
The law expects parties to live up to the obligations they’ve agreed to. If a person or corporation has breached a contract, they are responsible for paying damages necessary to make the other party to the contract whole, and to put the party in the same position he or she would have been in if the contract had been performed. A person or corporation who breaches a contract may also be responsible for other damages, including attorney’s fees and consequential damages.