Posted on December 13, 2024

At some point in business, it is inevitable that there will be a breach of contract, and when that takes place, that means that a lawsuit or litigation might come knocking at your door.

To clear up misinformation, unless you are in small claims court, you cannot argue and introduce any evidence to support your case however you want. There is something called rules of evidence and if you do not have evidence introduced the right way, you may be prevented from using that evidence.

Here are 4 business strategies that you can implement now and in your business that will help you have some legal safeguards in place just in case a lawsuit happens.

Tip #1: Save text messages, photos, and any videos you have with clients or arriving at events. Store it in the cloud where it will not be deleted from your phone.

I recommend taking screenshots as well and uploading screenshots and the originals to a safe storage place.

This is important because if the demand letter or lawsuit happens 2 years from now, if you no longer have any supporting evidence you may be at the mercy of the court or in a he said, she said scenario.

A side question that may have popped up for you is: Can someone really sue me 2 years later?

Chances are you do not have the contract clause I included in my 8 Copy + Paste Contract Clauses, without that clause, yes, you can be sued years later as long as it is before the state’s statute of limitation runs out. In Maryland and DC it is 3 years.

Meaning your client from 2 years ago could sue you now.

After 2 years:

1. Your memory of events may not be clear.

2. Evidence may not be available.

3. Any witnesses may not have a good recollection of events.

Do you remember what you were doing on the 7th of November at 2:00pm?

Probably not. That means you may not have the evidence or witnesses to help you beat a breach of contract case.

Make it easy and create client folders in the cloud and save evidence as you go along just in case.

Note: Be aware of consent laws and notice requirements for video and audio recording. Maryland is a 2-party consent state.

Tip #2: Document phone conversations in writing.

Never rely on your memory of a conversation and never assume that what you said is exactly what they heard.

Follow up every conversation in writing.

Here is a sample follow up:

“Thanks for speaking with me today. I’m writing to summarize our conversation and make sure we are on the same page moving forward. If anything you read is incorrect, respond back and let me know.”

This is your evidence for conversations that could come back to bite you.

Also remember that everything you write could be evidence in court. Only conversations with your attorney seeking legal counsel are protected from disclosure.

Tip #3: Make sure if you have someone working with you that they document in writing their work with a client in real time. It could be a work log or in your client management system.

This also applies to you as well. Document your work for a client and your actions in real time in a client management system.

Record the work done, actions taken, people contacted, and other important details with date and time, and clearly identify the writer and action taker.

Why?

If you have to go to court months or years later. You can use your work log to jog your memory and recollection of events and could possibly use it as evidence in court.

Tip #4: Document problem behavior and breaches in real time and in writing.

The client is late on payment. Client doesn’t communicate on time. Client did not submit requested information or documents by the deadline.

If your contract and policies are clear about what you need, communicate the problematic behavior in writing to the client in a non-confrontational way and tone with a remedial plan of action to improve the working relationship.

You’re doing two things at once. You are documenting a history of problematic behavior which may also be breach of contract behavior for support and evidence later if you need to terminate the contract.

Second, you are providing a corrective action plan for them to continue working with you.

This evidence could also be used to support your defense that you did not breach the contract or that you were justified in breaching the contract due to the actions of the client.

These are 4 practical tips that you can implement in your business that have huge implications for helping you defend yourself against a breach of contract case.

Remember that: Legal victories start with your business practices.

Looking for contract clauses to block a lawsuit or demand letter 2 years after the fact?

Take advantage of our 8 Copy + Paste Contract Clauses you can get now here .