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4 things to do when your partner breaches the contract

On Behalf of | May 11, 2023 | BUSINESS & COMMERCIAL LAW - Business & Commercial Law

More than one person running a business is mainly associated with advantages, from having support when needed to accessing new markets. Business partnerships are popular in both startups and established companies. However, you can only enjoy its benefits if you are on the same page with your business partner. If they breach the contract, the business may incur losses, and you may feel betrayed.

This guide discusses what to do when your partner breaches the contract.

Understand the breach

When you learn of your partner acting in a way that’s not in the company’s best interest, you should obtain more information. This will allow you to understand the breach in-depth and its liability.

Reread the contract

You should reread your partnership agreement, specifically the breach of contract clause. This way, you can make the right moves- you don’t want to also go against it. 

Therefore, when you find out your partner breached the contract, you should stay calm. Don’t make decisions hastily, as this can disadvantage you.


With adequate information, you can respond appropriately. If the contract requires you to follow certain processes before removing the partner from the company, do so. Expelling them without doing this may constitute a breach of contract.

Seek damages

Your partner breaching the contract can lead to significant damages. For instance, if they give a competitor confidential information, and they use it as a competitive edge, you may incur losses as a result. Therefore, you should seek damages. You can do this by negotiating a settlement with the help of a neutral third party or by filing a lawsuit.

If your partner breaches the contract, it will help to get legal guidance to protect yourself and the business.