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Rescission can end a B2B relationship marred by contract breaches

On Behalf of | Jan 15, 2025 | Uncategorized

Business-to-business (B2B) company operations can be lucrative and relatively predictable. Unlike consumers, who operate on unpredictable whims, organizations typically want to lock in consistent services and supplies from vendors.

Contracts with other companies can provide a consistent source of revenue or ensure that a company has the materials and support services it needs to operate. Contracts may outline terms including standards for services provided, pricing for materials and timelines for projects.

Organizations that sign B2B agreements with other companies generally expect other parties to fulfill their contractual obligations. When a breach of contract occurs, litigation might be necessary to resolve the matter. Requesting contract rescission can be a viable means of resolving a contract dispute with another company.

How does rescission help?

Organizations often sign contracts that could persist for years. They have an obligation to continue their working relationship with the other company until they meet certain criteria. A contract breach by the other party does not automatically eliminate the obligations imposed on the business that has so far fulfilled the contract.

Most contracts include severability clauses. There is language within the contract ensuring that the document as a whole remains enforceable even if one party violates certain aspects of the agreement. Although severability clauses can be beneficial in many cases, they can also leave organizations tied to professional relationships that are dysfunctional or unproductive.

When another party has violated an agreement and breached the trust of leadership at another organization, continuing to do business together may not be the best option available. Contract rescission is one of the remedies available in a breach of contract lawsuit.

A civil court judge can effectively invalidate or cancel contracts. Requesting rescission can terminate the working relationship between the parties and formally end the obligations that one business has to another. Companies dealing with a frustrating breach of contract scenario can request rescission in addition to seeking damages and other legal remedies allowed under the law.

Reviewing a breach of contract scenario with a skilled legal team can help the leaders within an organization decide what types of solutions to request when pursuing business litigation. Contract rescission is one of several viable options that can help resolve frustrating B2B contract issues.