When entering into a business agreement in Ontario, both parties are expected to fulfill their end of the bargain. However, there may be situations in which one party fails to meet their obligations, resulting in a breach of contract. If you are the seller, and the buyer has breached your agreement, you may consider suing them for damages.
Before taking legal action, it is important to determine whether the buyer has indeed breached the contract. A breach of contract occurs when one party fails to perform their contractual obligations or performs them inadequately. In the case of a buyer, this could mean failing to pay the agreed upon price or failing to take delivery of the goods or services provided.
If you believe that the buyer has breached the contract, the first step is to send a demand letter. This letter should outline the specific details of the breach and request that the buyer remedy the situation within a specified timeframe. If the buyer fails to satisfy the demands outlined in the letter, you may choose to file a lawsuit.
When suing the buyer for breach of contract, it is important to consider the monetary damages you have suffered as a result of the breach. This may include any costs you incurred in attempting to fulfill your obligations, such as shipping costs or production costs, as well as any lost profits due to the breach.
It is also important to consider the legal costs associated with suing the buyer. While it may be tempting to pursue legal action, the costs of attorneys’ fees and court costs can quickly add up. It is important to weigh the potential recovery against the costs of pursuing legal action.
In Ontario, there is a two-year limitation period to bring a claim for breach of contract. This means that you must file your claim within two years of discovering the breach. It is important to act quickly to preserve your legal rights.
In conclusion, if you are a seller in Ontario and the buyer has breached your contractual agreement, you may consider suing them for damages. However, it is important to ensure that you have a strong case and to weigh the potential recovery against the legal costs associated with pursuing a lawsuit.