While a breach of contract can set you back financially, many don’t realize the effects and implications a breach of contract can have for themselves or their business. A contract, which is an agreement between two or more parties, legally requires certain parties to either perform or refrain from particular acts. When one of the parties acts contrary to this agreement, they have breached their contract.

When someone alleges a contract has been breached, they will most likely go after financial compensation for financial harm, but the breach can affect your business in bigger ways.

Legal Battles

In the event of a breached contract, legal battles are sure to follow. Each side will have its own legal goals and defense, which will take up more time than a business can afford.

Business Relationships

When you breach a contract, it could communicate more to your other business relationships and relationships you make in the future than you realize. Other clients may begin to wonder if your business is trust worthy and if you will follow through on what you have promised them.


Similar to your business relationships, your overall reputation could take a hit. If you have cases against you, it will surely pop up when someone does a Google search of your business. This leads to mistrust before a person or entity even contacts your business.

Specific Performance

Once you are in front of a judge, it could be ordered that you follow through on the obligations of the contract without some of the benefits the contract had offered.


When your business chooses not to follow through, you could be held in contempt. This will create bigger legal issues and take more time away from conducting business.

Legal Fees and Punitive Damages

Of course, finances are always a concern. However, they can extend far beyond the damages outlined in the contract. Legal fees add up quickly and a judge may find you owe more in punitive damages and even compensatory damages than expected.

If you are considering breaching a contract, you may have other options. Talk to one of our Philadelphia contract lawyers at Bochetto & Lentz today to find out how you can legally and lawfully end a contract without sacrificing aspects of your business.