Contract breaches are frustrating for successful professionals and reliable businesses. They may experience losses and setbacks because other people fail to fulfill their obligations.
Frequently, those affected by contract breaches assume that they no longer have any obligation to uphold their side of the agreement after a serious breach by the other party. Contrary to that presumption, it is often necessary to go to court to officially end a contract after a breach.
Breaches do not invalidate all contracts
The specific language and clauses included in a contract determine whether or not a breach invalidates the arrangement between the parties. While it seems reasonable to assume that a material breach of contract renders the agreement invalid and unenforceable, severability clauses are common inclusions in many contracts. Contracts may include language that makes the agreement overall enforceable and valid after verifiable breaches of certain terms occur.
If there is a severability clause in the contract and one party stops making payments or sending deliveries due to the breach committed by the other party, the party that initially breached the agreement could then allege a breach of contract and initiate a lawsuit. A judge has the authority to terminate contract obligations as one of the remedies in a breach of contract lawsuit.
Working with an attorney to document contract violations and navigate contract litigation can be valuable for those who want to end a contract governing a business relationship. If a contract includes a severability clause, formal attempts to terminate the contract may be necessary to protect the party affected by a breach of the agreement.
