What happens if someone breaches a contract with my small business?

If someone breaks a contract with your small business, you have legal options—but you need to understand what they are and act quickly.

You Can Sue for Damages

Your most common remedy is a lawsuit for damages. This means you can ask the court to award you money that covers your actual losses from the breach. If a vendor failed to deliver materials you needed to complete a client project, for example, you could recover the cost of finding a replacement vendor, any project delays, or lost revenue.

Damages aren't meant to punish the other party. They're meant to put you back in the position you'd have been in if the contract had been performed correctly. Courts look at what you actually lost—not what you *think* you should have gained.

Force Them to Perform (Specific Performance)

Sometimes money isn't enough. If the contract involves something unique or irreplaceable, you can ask the court to order the other party to actually do what they promised. This remedy, called "specific performance," is less common than damages, but it's available in certain situations.

For example, if you contracted to buy a specific piece of equipment that's no longer available elsewhere, a court might order the seller to deliver it rather than just awarding you money.

Cancel the Contract

If the breach is serious enough, you may be able to ask the court to cancel (rescind) the contract entirely and release both sides from their obligations. This is useful when the breach is so fundamental that performing the contract going forward doesn't make sense.

The Importance of Acting Fast

Time matters in breach of contract cases. The longer you wait to take action, the weaker your position becomes. Evidence fades, witnesses' memories grow fuzzy, and the other party may assume you've abandoned your claim.

Don't delay in documenting the breach and consulting with an attorney.

Preserve Your Evidence Now

Start gathering documentation immediately:

**The signed contract** (or emails showing the terms if nothing was formally signed)

**Communications** about performance or the breach

**Receipts, invoices, and payment records**

**Photos, emails, or messages** showing what wasn't delivered or performed

**Any damages** you've already suffered (lost sales, replacement costs, etc.)

Don't delete anything, even if it seems unimportant. Your attorney will need the complete record.

What to Do Next

Breach of contract cases are fact-specific. What works in one situation might not apply to yours. The timeline, the exact wording of your contract, what you can prove about damages, and Salt Lake City's local business context all matter.

If you're facing a contract breach with a vendor, customer, or business partner, The Law Office of Bobby Udall can help. An experienced attorney can review your contract, assess your claim, and explain your options before you lose valuable time.

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About The Law Office of Bobby Udall

The Law Office of Bobby Udall is located in Salt Lake City and helps small business owners navigate contract disputes and other legal challenges. Visit bobbyudall.com for more information.

The Law Office of Bobby Udall
801.980.7777 | 801.981.4679
https://bobbyudall.com
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