As a small business owner, you have probably invested a lot of your time and energy in building your enterprise and developing a quality product or service. However, one area that may also need your attention is potential liability. Approximately 12 million contract lawsuits are filed against small businesses each year. The majority of these disputes concern breach of contract claims. Therefore, it’s important to know: Is your small business at risk of a breach of contract lawsuit?
Small businesses and Lawsuits
Approximately 90% of all businesses will experience a lawsuit during the life of their enterprise. Additionally, on average, 36-53% of small businesses are sued each year. Further, 45% of small businesses are involved in litigation. Forty-three percent of these enterprises are threatened with a lawsuit every year. Most small business-related litigation will involve a breach of contract claim.
Small Business Breach of Contract Claims
Contracts are often an integral part of small business operations. Your small business may have multiple agreements with customers, vendors, service providers, and others. At any time, a party to a small business agreement could claim that there has been a breach. Several things could happen once an allegation of this nature has been raised. For instance, the complaining party may attempt to informally work things out with you. Your business may also be subject to an arbitration clause. There is also the possibility that the other party will file suit against you and your enterprise.
Protecting Your Small Business from Breach of Contract Liability
It’s important to know that just because someone can file a breach of contract lawsuit, it doesn’t necessarily mean that they will be successful. Additionally, there are steps you can take steps to protect your small business from liability.
The best way to help safeguard your enterprise from a breach of contract claim is by working with a small business attorney. Having legal advice from the very beginning can help prevent issues down the road. The sooner you begin working with a lawyer, the sooner you can develop preventative measures and a defensive strategy. In addition, your attorney can help you evaluate your business and identify the best ways to mitigate litigation risks. Ideally, your lawyer will be there to help you draft your contracts. If you have existing contracts, a small business attorney can help you evaluate these agreements and navigate any pending or potential disputes.
Contracts can be an essential part of a small business’s foundation, and it’s important to have the information you need to prepare agreements that protect what you have built. You also want to have the best defenses available should your business be sued for breach of contract. Working with an experienced small business attorney can help ensure that you have the advocacy you need in every circumstance.
Contact an Experienced Florida Business Attorney
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with 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 small business 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.