What to do next
Re-read the contract carefully
Identify the specific obligation breached, any notice or cure period you must give, and whether the contract requires mediation or arbitration before court. Note any limitation-of-liability clause capping what you can recover.
Put it in writing and mitigate
Give written notice of the breach as the contract requires, and take reasonable steps to reduce your losses — courts generally expect you to mitigate rather than let damage accumulate.
Weigh recovery against cost
A lawyer can assess the strength of the claim, what's realistically recoverable, and whether the counterparty can actually pay. Suing a company with no assets rarely makes commercial sense.
Frequently asked questions
Can I just stop performing?
Be careful. Unless the breach is serious enough to justify termination and you follow the contract's process, stopping your own performance can put you in breach and expose you to a counterclaim.
What can I recover?
Typically damages that put you in the position you'd have been in had the contract been performed — subject to any limitation clause, your duty to mitigate, and what you can prove.
Is there a deadline to sue?
Yes. Limitation periods apply and vary by jurisdiction and claim type. They are strict, so get advice early rather than after the fact.
Do I have to arbitrate?
If the contract contains a binding arbitration clause, usually yes — courts generally enforce them. Check that clause before filing anything in court.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.