How a Breach Of Contract Can Be Detrimental To Your Arizona Business

Phoenix’s Preeminent Business Attorneys Explain The Dangerous Effects Of A Breach Of Contract

Your business runs on predictability. While you can’t predict market trends, you can anticipate them. The rest of your business, such as where you get your supplies, how you provide your services, and so on should be predictable so that you can offer consistent service to your customers. Having the right contracts in place, drafted by an experienced business attorney in Phoenix, can ensure that predictability.

However, there may be times when someone breaches the contract you have entered. Here are a few ways that breach of contract can be detrimental to your business:

Phoenix Business Attorney Explaining The Dangerous Effects Of A Breach Of Contract For Arizona Businesses

Will Not Have The Needed Materials

You rely on your vendors to provide the raw materials you need to make your products or to support your services. You likely even have regular shipments set up to ensure you have a ready supply of what you need. If a supplier breaches your contract, you could experience an interruption in supply, which could limit your ability to create the products you sell or to provide services. That can undercut your bottom line, possibly even costing you serious losses.

If you have a breach of contract with one of your suppliers, you can work with a Phoenix business attorney to resolve the problem or to sue for damages. You may be able to get compensation for your profit losses or other damages caused by the interruption in supply. Your business attorney will advise you on what’s possible and fight to help you get what you need for redress.

May Suffer An Interruption In Service

Not all your providers will be for supplies or even materials for you to provide services for customers. You have providers who offer services to the essential operations of your business, such as payroll providers, utility companies, waste removal providers, or security services, among others. If any of those service providers breaches a contract with your business, you may not be able to have basic operations. You may not be able to pay your employees or open your doors.

Again, you’ll need to work with an experienced business attorney serving Phoenix to determine the best course of action. You may not want to restore your contract with these providers after what they’ve done, but you will surely want to be compensated for your damages.

May Lose Trade Secrets

You may also have contracts with your employees or partners dictating that they cannot share your trade secrets, such as proprietary processes, unique ingredients, recipes, formulas, and so on. If an employee, agent, partner or other business associate shares these secrets inappropriately, you could suffer serious losses over the long term, potentially even leading to the closure of your business.

You may also have non-compete agreements that prevent your current or previous employees or vendors from hiring your current employees or stealing your vendors. When this sort of contract is breached, you may end up losing your best talent or suppliers, which can undermine your business. You could lose a lot in the short term and the long term.

It is important that you have the right contracts in place to protect your business. To start, you need to get an experienced Phoenix business attorney to draft these contracts so that they can withstand legal scrutiny if they are challenged later. Then, if someone breaches the contract, you will have a better chance of getting compensation or other redress for the damage that the breach has caused your business. But no matter what contract you have, you should always work with the best business lawyer you can find to litigate if there is a breach of contract. The future health of your business can depend on the outcome, so you need to work with the right lawyer to create the best legal strategy you can to get the restitution you need.

Contact Our Arizona Breach Of Contract Litigation Lawyers

The attorneys at Denton Peterson Dunn are ready to help. Our top-notch business attorneys can draft business contracts that will withstand challenges, helping to ensure compliance. If you are dealing with a breach of contract, our attorneys can help get you the compensation or other redress you need to make up for what your business has lost and protect it going forward. Call Denton Peterson Dunn in Phoenix today to schedule a consultation with a committed business attorney and start exploring your options.


Brad Denton, Business Lawyer
Denton Peterson Dunn

Mesa Location

1930 N Arboleda #200
Mesa, AZ 85213

Office: 480-325-9900
Email: [email protected]

Scottsdale Location

7272 E Indian School Rd #540-132
Scottsdale, AZ 85251

Phone: 480-325-9919
Email: [email protected]