Running a California business can mean creating various relationships in efforts to help the company grow and to fulfill its purpose. Often, these business arrangements can have a lot at stake, so it is wise for company owners to create contracts to ensure everyone is on the same page as far as what is expected from each side. Of course, a breach of contract could occur that leaves a company facing damages.
How the written contracts help
While it is best to have contracts in writing, both written and verbal contracts could be breached. However, it can be difficult to prove the exact terms of a verbal agreement because there is no written record of the details. While business owners can still fight to address the breach of a verbal agreement, the situation becomes much more difficult.
It is also important to determine whether taking action against a breach is worth the effort. If a minor or non-material breach occurred that does not significantly affect the business relationship or the matter at hand, it may not be worth taking legal action. However, if a company suffers losses or a business matter can no longer be carried out because of the breach, filing a legal claim may be warranted.
Contracts can certainly help safeguard business dealings, and it is typically more advisable to have written agreements. Still, California business owners who believe that a breach of contract has occurred may want to take the time to review their options. They may find that the breach has caused enough problems to warrant moving forward with litigation.