Businesses use contracts to control operating expenses and manage professional relationships. Contracts help clarify what obligations parties have to one another. They make business agreements enforceable if either party fails to fulfill their promises to the other.
When there are major disputes about a contract or a breach of a written agreement, one of the businesses involved may decide to pursue contract litigation. There are several remedies that the courts can offer during contract lawsuits, including injunctions.
How can injunctions help businesses faced with contractual issues?
The courts can limit continued misconduct
Injunctions are a form of court order that can prohibit certain conduct or require certain actions. Judges can restrict the actions of either party to prevent further issues.
In some cases, a judge might issue a preliminary injunction before the hearings for the case to limit misconduct and prevent additional contract breaches. They can also issue a permanent injunction after reviewing the case in full. The goal may be to permanently restrict conduct prohibited in the contract. Injunctions can prevent the misconduct of one party from snowballing into a major issue for the plaintiff that brought the lawsuit.
Judges can also mandate specific actions
Injunctions can sometimes serve as a way to resolve business disputes by requiring specific conduct on the part of one party. Issues related to non-performance or a failure to meet contractual standards could result in injunctions that help resolve the issue. Judges can issue injunctions to compel actions that can resolve the dispute.
There are other viable remedies available if business leaders have to litigate to resolve significant contract disputes. Terminating the contract, seeking damages or enforcing specific contractual terms are all potentially possible goals for contract litigation.