The integrity of the contract process is essential to commerce which is why it is important to understand how to effectively respond when faced with a breach of contract. A contract dispute in Louisiana related to the sale of a nail salon has led to a lawsuit. The former owner of the nail salon is suing the current owner for $70,000 related to the alleged breach of the purchase contract. According to the former owner, she entered into a contract with the current owner to sell her nail business. The terms of the purchase contract allegedly provided for the current owner to pay the former owner an initial payment of $30,000 followed by second payment of $70,000 within one month of the initial payment.
The former owner asserts that if the current owner failed to make the second payment she was in jeopardy of losing the business. The former owner also asserts the current owner owes her a for an unpaid loan, as well as other financial disputes, in addition to the breach of contract claim for which she is seeking $70,000 in damages.
Contracts govern many of the relationships individuals and businesses interact according to each and every day. As such, contracts, such as sales contracts or purchase contracts, are important to commerce and the success of many businesses. The reality is that the importance of contracts to the smooth running of a business also renders contract disputes and litigation related to breach of contract claims important. It is important when facing a breach of contract to know what to do.
There are a number of legal options available when facing a contract dispute that may depend on the goals of the non-breaching party and the desired result. While no business wants to face a breach of contract situation, it is important to know how to respond to be able to efficiently move forward for the success of the business and a successful future.
Source: The Louisiana Record, "Dispute over sale of nail salon sale results in $70K lawsuit," Kyle Barnett, April 4, 2015