Contracts are often an integral part of operating a Florida small business. When they work as intended, these crucial documents can provide your enterprise with the certainty and protection it needs to function and thrive. However, when you enter into these agreements, there is always the chance that your business could be sued for breach. The good news is that there are ways to safeguard your operation. Here is more on how to protect your Florida small business from a breach of contract claim.
Florida Small Businesses and Breach of Contract Claims
If you are concerned about someone filing a suit against your small enterprise, you are not alone— 75% of small business owners are worried they’ll be sued or that someone will threaten to sue them. Ideally, your small business will never be confronted with a breach of contract claim. However, the longer you operate, the greater the chances of someone filing suit. Approximately 90% of businesses get sued while in operation, and 35-53% of small businesses are in litigation. The majority of these lawsuits involve breach of contract claims.
Carefully Drafting Your Contract Terms
If your operation is sued, the dispute will probably concern you or the other party not performing a service or providing a good as agreed. However, breach of contract lawsuits may be avoidable through careful drafting. During contract negotiations, you and the other party will be given an opportunity to develop agreement terms. The more thought you put into this process, the better. Your contract terms can be written in a way that anticipates and prepares for future issues and protects your interests.
It’s important to recognize that contracts are legally-binding documents. Consequently, they should be drafted and reviewed by an experienced small business attorney before you sign. Your business lawyer can help you evaluate your agreement and create a contract that will safeguard your interests today and in the future.
Getting Ahead of the Conflict
Another way to protect your small business from a breach of contract dispute is by identifying and addressing the issue before it becomes a conflict. Being proactive rather than reactive regarding a contract issue can make a world of difference. For instance, suppose you know that you won’t be able to deliver a complete order to a customer because of supply-chain issues. If you wait for the breach, it could create problems between you and the other party and disrupt their operations.
A better option would be to contact your small business attorney, explain the situation, and work together to navigate the issue with the other party. Sometimes by getting ahead of the conflict, you may be able to avoid it altogether.
Doing Business with Reputable Parties
As a small business owner, you probably already know that reputation is everything. How you operate and conduct your enterprise matters, and you want to do so with integrity. While you have control over your operations, their ability to function may depend on the contracts you form with other parties. Therefore, you want to make sure you thoroughly evaluate the other entities with which you intend to contract.
Choosing to enter into contracts with reputable parties may help you avoid future disputes. When possible, do your due diligence and thoroughly examine those with whom you will be doing business. When both sides operate according to compatible and equitable principles, it can help limit conflict.
Contact an Experienced Florida Business Attorney
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.