When two or more businesses engage in a contract, it is to ensure that the details of the deal go as discussed and to ensure that each party agrees to uphold their end of the bargain. Most contracts between companies include clauses that mention what could happen if one party fails to uphold their end of the bargain, also known as breach of contract. While breach of contract is never the desired outcome for either party, it sometimes happens. The company affected by the breach may decide that it is in their best interests to seek damages for the costs associated with the other company's breach.
Just about every business in Louisiana is involved in some type of agreement, or contract, with other businesses. Whether buying or selling goods and services, contracts put agreements in writing and can outline specifics to that agreement, even in case of breach. But what is breach of contract? How might a breach of contract on behalf of a business partner affect your business?
When two companies in Louisiana enter into a contract, they expect that the terms will be followed to the benefit of both parties. However, as one recent example shows, when one party fails to hold up its end of the bargain, it can lead to a contract dispute.
Businesses in Baton Rouge enter into contracts every day. Whether employment contracts, contracts with suppliers or vendors or any other contract, these days, business contracts are an everyday part of doing business. Unfortunately, inevitable that at least one of a business's contracts will be the subject of litigation, perhaps, a breach of contract.
Louisiana businesses, whether they are small mom-and-pop operations or large corporations, depend on contracts as part of doing business. Unfortunately, even the most ironclad contract can still be breached. When one party to the contract fails to fulfill its obligations, the other party may be entitled to damages.
Whether they like to watch professional sports, educational programming or reality television shows, all cable television customers have their favorite channels and programs. Paying monthly for cable television is often well worth it for those in Louisiana who want to access these channels. However, some cable television customers may find their favorite channels have "gone dark," due to contract disputes.
When entering into a business relationship, it is important to give a great deal of thought to the relationship and the contract that will be drawn up between the parties commemorating the relationship. A well-drafted contract can protect the businesses and business relationships involved and outline the obligations and rights of the parties. It is important to take the right approach through the contract negotiation, formation, execution and enforcement process.
Contract relationships are important in any business setting. As a result, it is important that they are honored and that the parties understand how to enforce them when they are not. Baton Rouge tenants have brought a lawsuit against their landlord asserting the landlord did not honor lease terms contained in the lease between the parties. The tenant company filed a lawsuit against the landlord asserting a breach of the lease terms.
Contract law is an important part of any business. Many aspects of a business are impacted by contracts and contractual relationships. Most business relationships are governed by contracts and it is a good idea that they are. It is also important to understand how to negotiate, draft and execute the best contract to describe the business relationship at hand. Contracts outline the rights, responsibilities and obligations of the parties towards one another. In doing so, they help protect the long-term future and success of the company.
A shopping center in Louisiana is asserting it has not been paid rent by one of its tenants. The owner of the shopping center leased a store to the tenants in 2012. The breach of contract claim asserts that the owner of the shopping center is owed $40,000 from the tenant who has fallen behind in payments. The shopping center has accused the tenant of breach of contract for the failure to make missed payments and is seeking damages for the financial injury that has resulted from the breach of contract.