{"id":208336,"date":"2021-07-20T16:04:26","date_gmt":"2021-07-20T03:04:26","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=208336"},"modified":"2021-08-04T20:34:26","modified_gmt":"2021-08-04T07:34:26","slug":"contract-breach-considerations","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/commercial-contracts\/contract-breach-considerations\/","title":{"rendered":"Contract Breach Considerations for NZ Businesses"},"content":{"rendered":"\n

If you are a New Zealand business that transacts with other businesses, you have likely underpinned your professional relationships with contracts. Contracts can come in many different forms and vary depending on the purpose. Businesses use contracts to <\/span>ensure remedies<\/span><\/a> if the other party refuses to perform an obligation in the agreement. Surprisingly, these situations happen often and are called <\/span>contract breaches<\/span><\/a>. If this happens to you, you must be aware of your rights<\/span>. Otherwise, the situation may leave you empty-handed. This article will explain the key considerations if your contracting party is to breach a contract.<\/span><\/p>\n\n\n\n

What Is a Breach of Contract?<\/span><\/h2>\n\n\n\n

A <\/span>contractual breach<\/span><\/a> occurs when a party to a legally binding agreement does not perform an obligation stated in the contract. This could mean that they refuse to perform it altogether or perform it exactly as written. For example, if you are a builder who has signed a contract to buy a specific material and the party supplies a different one, t<\/span>hey are breaching the contract. Often enough, this would be an accident, and both parties could resolve it quickly. However, there are times where your contracting party will deliberately refuse to perform an obligation correctly.<\/span><\/p>\n\n\n\n

1. Communicate With Your Contracting Party<\/span><\/h2>\n\n\n\n

If your contracting party breaches the contract, your first port of call should talk to them. Often, there has been a mistake or miscommunication that has caused the breach of contract. This scenario is easy to rectify. Your contracting party may also be in a situation where they cannot perform the full extent of their obligation due to financial pressure. If this is the case, you should think about giving your contracting party some leeway if you can afford to. If they have been an excellent business to deal with, it may be hard to find a new business to partner with if you decide to cut ties. However, this can only happen if you can take on the extra burden that the contracting party is putting on you.<\/span><\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

\n
\n Need legal advice?\n
\n \n Call 0800 005 570<\/a> for urgent assistance.\n
\n Otherwise, complete this form, and we will contact you within one business day.\n <\/span>\n <\/div>\n\n \n\n
\n