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How to successfully deal with a breach of contract without a lawsuit?

What do you do when a contract in front of you is broken or when you owe a sum of money?

A professional and quality warning letter before filing a lawsuit can incentivize the other party to fulfill the contract as required or pay you compensation, without the need to file a lawsuit in court.

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• Agreements

Adv. Dror Harel, in collaboration with Zap Legal

Monday, 30 November 2020, 12:08

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Agreement (Photo: shutterstock)

It often happens that a person who has signed a contract with us does not meet his obligations.

For example, a tenant of an apartment who does not pay the rent, non-paying customers, suppliers or various service providers who have not fulfilled their obligations and the like.

We find ourselves suddenly chasing those people, demanding that they live up to their commitment to us, threatening a lawsuit and not really meaning to, sending angry emails and wasting precious time on unanswered calls.

Eventually we find ourselves forced to turn to legal channels.

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What are the pros and cons of a pre-claim warning letter?

What are the legal options to oblige a person to meet his contractual obligations?

The question that the aggrieved party is asking itself, that the contract is not in place, is how the legal dispute can be resolved, even if by compromise, without entering into lengthy and costly lawsuits, which may even be dismissed by the court.

One of the most effective means of doing this is to locate a lawyer who specializes in drafting letters of demand and notice before a lawsuit, and conducting negotiations between the parties with close legal assistance.

The warning letter sets out the various legal reasons why the other party must meet its obligations.

It presents all the legal arguments, the existing case law on the subject and its suitability for the circumstances and facts of the case.

Also, our exact requirements are raised from the other side and the financial amounts we deserve.

Thus, the other party sees that there is a real and well-founded ground for a lawsuit against him, and that if the case goes to trial he is likely to lose while our hand will be on the top.

The other side understands that you are serious and not just threatening idle threats and thus, the chance that he will repay his debt or enter into negotiations to create a compromise increases tens of times.

Moreover, even if the other party refuses the demands raised in the letter, his answer will reveal his line of defense, and it will be possible to formulate your claim accordingly.

And this is perhaps the only downside of a pre-claim warning letter, because if your claim has some element of surprise, and the debtor does not meet the demand, then your claim line may be exposed to him.

However, an experienced attorney knows how to draft an assertive warning letter that safeguards all of your commercial and legal interests.

Why should the notice letter be sent by a lawyer?

A lawyer in the field will know how to draft the letter in such a way without compromising its effectiveness

First, we will emphasize that each person can issue the letter himself, but there are two main reasons why it is advisable to enlist the services of a lawyer in order to do so.

The first, it seems obvious - when the other party receives an official warning letter from a law firm, with a reasoned legal argument as to why he must meet his obligations while demanding monetary compensation and performing specific actions, he is more likely to take it seriously than any communication he had with you up to that point , And will not see this as an idle threat.

The second, which is not always clear, and is no less important, is that even if the letter does not help in the end, and the matter reaches the court anyway, it will still serve as evidence during the trial.

Therefore, it is important that his wording be accurate and concise and expose to the defendant as little as possible your line of claim.

A lawyer in the field will know how to draft the letter in such a way without compromising its effectiveness.

Although a letter sent by a lawyer has a financial cost, it is low and marginal - both in relation to the cost of filing a lawsuit and in relation to the losses that will be caused to you due to the breach of contract in front of you.

Why not approach the legal process directly?

Even when it is clear to you that the other party cannot fulfill its obligations and you will have to go to trial anyway, it is important to send a letter of notice before a lawsuit.

This way you can show the court that you have exhausted all possible personal private proceedings, and tried to reach compromise agreements in any way you can, before you go to get legal redress.

Moreover, there are a number of proceedings in which the court will dismiss the claim outright if no notice letter has been sent prior to the claim and the debtor has been given the opportunity to respond to it in an orderly manner.

In conclusion, in light of the fact that the courts are already so tired and flooded with many disputes and lawsuits, it is better to try to reach quick and effective compromises and settlements outside the walls of the court.

A warning letter before a lawsuit is one of the most effective and cost-effective means to do so.

Dror Harel Law Office specializes in contract law, legal-business negotiations and drafting professional warning letters before a lawsuit.

052-4221996, 077-2307507

Article courtesy of Zap Legal The

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