Sunday, November 4, 2007

Contracts - Breach

Let's talk about contracts for a minute or more.

You spent time, energy, and money in negotiating the terms of the contract. Why? To make money, of course. The contract speaks of what each party is to do and what they get for doing these things.

The contract also sets out what will happen if there is a breakdown. The law calls that breakdown a breach of contract.

Perhaps lawyers expend too much energy worrying about breaches of contract but the fundamental idea behind a contract is to make the thing work. A breach means the thing did not work as planned. Besides litigation costs more money than the time spent in negotiating the contract.