Business contracts are agreements built on trust and upheld by the law. Contracts lie at the heart of most partnerships, deals and employment relationships, and it can be a costly betrayal when one party violates the terms agreed upon in the document.

There are multiple ways to settle a dispute that arises from a breach of contract, though taking the matter to court may be the most immediately apparent option. You can decide whether or not litigation is necessary by understanding when filing a lawsuit is the right call and what your other options might be.

Should you file a lawsuit for a breach of contract?

Filing a lawsuit is a valid option when another party breaches their contract with you, especially if you feel that there is strong evidence in your favor. Presenting your case in court allows you to pursue compensatory damages even if the violation is not criminal in nature. However, it is always a good idea to consult with your legal team before committing to the idea of litigation.

What are the alternatives to litigation?

Mediation can be an appealing alternative to courtroom action when both sides are willing to work toward an amicable outcome. Arbitration is another option, and one to consider when your situation is contentious but not severe enough to warrant a lawsuit.

Regardless of what course of action you choose when settling a breach of contract, it is important to have legal representation by your side to help ensure fair advocacy of your interests. When a breach of contract calls for litigation, your advocates can collaborate with you toward an outcome that allows business to continue as usual.