3) Mitigate your harm.
It is important that you take immediate action to minimize your harm as a result of the breach.
This is important for business and legal reasons. Damage control is essential for your business and if things are not looking good for reaching a solution with the breaching party, you will have to take reasonable steps to protect your business.
On the business side: this is essential to ensure the health of your business and its ability to survive the impact of the breach.
On the legal side: this is a legal requirement that could impact your recovery on a successful breach of contract claim in Court. In short, don’t rely on the Court or the other party to make you whole. Do your best to minimize the harm for legal and business reasons.
4) Explore your legal options.
Last but not least, make sure you find an experienced commercial or business litigation attorney to advise you and possibly represent you in connection with a breach of contract claim.
A business litigation lawyer will be able to assess the strengths and weaknesses of your contract, take stock of the facts relating to the breach, and give you an analysis of how those facts will be analyzed by the court in light of the wording of the contract and the governing law.
Even if you learn that your breach of contract claim is not a slam dunk, make sure your attorney also considers alternative claims and gives you a detailed sense of the costs, risks, delays, and likelihood of success of your breach of contract claim in a court of law.
As an experienced business advisor, mediator, and litigation attorney, it is not until you have completed all four of the steps detailed here that I would typically recommend commencing litigation to recover for a breach of contract.
There are always exceptions of course, including when the breach causes a need for relief that will cause irreparable harm if not immediately addressed.