Breach of Contract
One of the most important parts of conducting business, or having some sort of a partnership with someone, is complying with the contracts you have signed. Included in these contracts are agreements and parameters that, if adhered to, set out the exact expectations of the business. Therefore, breaching your contract is not only harmful for your business relationship, but it can also expose you to breach of contract lawsuits.
The best way to avoid such a lawsuit is to know who you have entered into an agreement with, create a precise contract, and follow it. Many of those who agree to contracts do so because they want to lay out the expectations of a certain business relationship. These types of contracts are especially common in creative fields like writing and other artistic productions. When starting a business with a friend, other familiar party, or even an organization, make sure you first do your research about their past business practices before drafting a contract with them. Once you have entered into a contract, you are legally obligated to follow through on it. It is important that you follow all of the set parameters and actions, as required.
The aforementioned advice, however, does not mean that a contract cannot end. What is important is that while the contract is still valid, that you do not breach its terms. Doing so can lead to a loss in reputation, lawsuits, and other fees that can hinder your business. If a lawsuit is brought to court, the court can order you to follow through on the actions required in the contract, and if you fail to do so, you will then be held in contempt. Even if you do not lose the lawsuit in the end, throughout the entire process you will lose precious time and money that could have been spent on the operations of the business instead.