Contract disputes can be distressing and costly which is why it is important that a party facing a contract dispute understand options the legal process can provide.
A large shoe wholesaler is suing a man in Louisiana that made a large purchase but did not make payments as agreed to. The wholesaler alleges in its lawsuit that it entered into an asset purchase agreement with the individual for the purchase of goods which were presumably shoes. The purchaser provided a down payment and was to make regular weekly payments of $1,000, with interest, until the debt was satisfied. According to the wholesaler, the purchaser only made payments totaling $26,350 of the $51,300 owed. The wholesaler has accused the purchaser of breach of contract and is suing the purchaser for $24,950 and interest.
When parties enter into a contract, the parties typically have the best of intentions for the business relationship. Sometimes, however, in business contracts and sale contracts, contract disputes can arise. Parties can suffer serious financial consequences when a contract has been breached because of the violation of contract terms. Because of this, the violation of contract terms may occasion the filing of a breach of contract lawsuit for damages.
It is important that those facing contract dispute litigation understand the accusations and remedies associated with the contract dispute. When parties enter into a contract, each party has certain obligations that are to be fulfilled under the contract. A breach can occur when a party fails to timely perform obligations under the contract, the party does not perform in accordance with the contract terms or does not perform its obligations at all. Depending on the circumstances, parties may be entitled to receive different types of damages such as monetary damages, performance of the contract or cancellation of the contract.
When a contract dispute or contract litigation has taken place it is important that parties understand the legal recourse and remedies available. An experienced business law attorney can help parties better ensure rights under a contract are protected.
Source: The Louisiana Record, “Shoe distributor suing a man who allegedly defaulted on a payment plan,” Kyle Barnett, March 27, 2014