A well-written contract is one that provides fair benefits and clear responsibilities for both parties. When you sign on the dotted line, you should do so secure in the knowledge that the agreement serves your best interests. And if all goes according to plan, both you and the other party will be well-served by your partnership.
But what happens if you come to realize that your contract is in some way problematic? For example, let’s say you discover a clause in the contract that, when employed, could cause you to lose an unacceptable amount of money. You know that continuing to honor the contract is a threat to your business, so you have no choice but to try to extricate yourself from the agreement. But how can you do this?
Well, your first and best option is to simply sit down with your partner and explain your concerns and ask if the contract can be canceled. Hopefully, your partner will agree to do this either for free or a small fee. If your contract has any termination or cancellation clauses, you should follow them to the letter.
If the other party refuses to end the agreement, you may then have to consider breaching the contract. This is a very serious step and should be done only if necessary. It is not likely that you will be able to simply walk away scot-free, but rather an arbitrator or judge will determine an amount of compensation you will have to pay the other party.
When breaching a contract, you want to limit the amount of compensation you must remit to your former partner. As such, it is best that you don’t breach your agreement without talking to an experienced business litigation attorney. The attorney could work in an effort to either get the dispute amicably resolved or to limit the amount you will be required to pay in damages.
