Ignore a Clear Breach of Contract
While there are reasons and circumstances where ignoring a clear breach of a contract by the other side may be in your best interests, most of the time doing nothing is not a good business or legal strategy. Likewise, conceding to the demands of the other side without getting anything any return is typically a poor choice. However, before making any strategic decisions about a contract dispute you should consult with an experienced contract dispute attorney.
Most of the time the first step will be opening negotiations with the other side to resolve the dispute. No matter what methods you use to resolve a contract dispute, your main goal will be to convince the other side that it is in their best interest to agree to your key demands.
Negotiation, mediation, and arbitration are only effective because of the shadow that litigation casts over the process. The more clearly both sides understand the costs and likely outcome of taking a contact dispute to court, the easier it will be to resolve a contract dispute without having to file a breach of contract lawsuit.
Commercial contract disputes often arise out of the financial and economic circumstances of the parties, but they are often not resolved because of irrational pride or optimism on the part of corporate management. The key to resolving a dispute is often not just understanding the legal consequences of a course of action, but also understanding the psychology of the other side.
Negotiate a Change to the Contract
The first step in negotiating a change to a contract to resolve a dispute is clearly defining your goals. Before you can craft a negotiation strategy you need to know what you need to achieve.
A contract attorney will be instrumental in helping you make sure your goals are realistic and will actually resolve the underlying dispute.
Once you understand your goals, you will need to notify the other side that you want to negotiate a change to the contract. Negotiation can be very effective when the two sides have different views of some vague portions of the contract.
The two sides can agree to amend to the contract to remove the vague language and replace it with something clearer. Negotiation can also be effective when the other side is unable to perform their duties under the contract, but it is in your interest to save the deal rather than litigate for damages.
Most businesses already have a keen understanding of what it takes to negotiate a good deal. Often, it requires crafting a solution where both sides can feel like they won something.