Whether you are a small business owner or help to run a larger corporation, you may handle contracts on a regular basis. Contracts are a necessary part of many business operations in Texas and across the U.S., as they help to establish the terms of an agreement between two or more parties. A situation may arise, however, where one party disputes the terms of the contract. One party may feel as though the other party did not uphold their end of the agreement or fulfill the terms of the legally binding document as promised.
Keep in mind that once a contract is signed, it is recognized as a legally binding document. Yet, it helps to have the contract notarized, or officially noted that the signatures on the contract are valid. The other party may contest that they actually signed the document at all.
There are several ways to handle a contract dispute. If one or both parties file a lawsuit, the issue may be settled in mediation before the case is taken to court. According to the Contract Disputes Act of 1978, both parties should do whatever possible to settle the dispute before it climbs to higher levels, such as the U.S. Federal Circuit Court of Appeals or the U.S. Supreme Court.
A breach of contract may warrant compensation for damages in the case. Punitive damages may include emotional pain and suffering caused by the breach, while compensatory damages reimburse the money you lost during the bad or illegal transaction.