How can you prevent common contract breaches?

1 Understand the scope and expectations

One of the main causes of contract breaches is a mismatch between what the parties agreed to and what they actually delivered or received. To prevent this, you need to understand the scope and expectations of the contract before you sign it. This means clarifying the terms, conditions, deliverables, timelines, payment methods, and performance standards of the contract. You also need to communicate effectively with the other party and address any questions, concerns, or changes that may arise during the negotiation process.

2 Use clear and precise language

Another common cause of contract breaches is ambiguous or vague language that leaves room for interpretation or confusion. To prevent this, you need to use clear and precise language in your contract that defines the rights and obligations of each party, the remedies for breach, and the dispute resolution process. You also need to avoid using jargon, acronyms, or technical terms that may not be understood by the other party or a third party such as a court. If you use any such terms, make sure to define them in the contract or attach a glossary.

3 Review and verify the contract

Before you execute the contract, you need to review and verify it carefully. This means checking for any errors, omissions, inconsistencies, or contradictions in the contract that may lead to misunderstandings or disputes later on. You also need to verify the identity, authority, and capacity of the other party to enter into the contract and ensure that they have the necessary licenses, permits, or approvals to perform their obligations. If you have any doubts or uncertainties, do not hesitate to seek legal advice or assistance.

4 Follow the contract terms and monitor performance

After you execute the contract, you need to follow the contract terms and monitor performance. This means complying with your own obligations and expectations under the contract and ensuring that the other party does the same. You also need to monitor the progress, quality, and results of the contract performance and keep records of any communications, documents, or evidence related to the contract. If you notice any signs of potential breach, such as delays, defects, or non-payment, you need to address them promptly and professionally.

5 Be flexible and cooperative

Sometimes, contract breaches are unavoidable due to unforeseen circumstances, such as force majeure events, changes in law, or market conditions. To prevent these breaches from escalating into litigation or damaging your reputation, you need to be flexible and cooperative with the other party. This means being open to renegotiate, modify, or terminate the contract if necessary and in good faith. You also need to be respectful, courteous, and honest with the other party and try to resolve any issues amicably and mutually.

6 Seek legal help if needed

Finally, if you cannot prevent or resolve a contract breach on your own, you need to seek legal help if needed. This means consulting a lawyer who specializes in contract law and who can advise you on your rights, options, and remedies. You also need to follow the dispute resolution process outlined in the contract, whether it is mediation, arbitration, or litigation. You need to act quickly and decisively to protect your interests and enforce your claims.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?