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.
When a contract is breached, it can have a significant negative impact on the non-breaching party and the business relationship. Contracts are used to effectively outline the relationships between parties engaged in a business transaction or business relationship and include the rights and responsibilities of the parties, as well as the obligations between the parties. When a contract relationship breaks down, it can result in economic damages and financial strain for the non-breaching party.
It is important to understand how valid contracts are formed and executed and methods to enforce a contract if one is breached. There can be different methods of enforcement based on the contract, the nature of the breach and how the party or parties to the contract want to handle the breach. Sometimes, negotiation is called for but in other circumstances, enforcement of the contract or a claim for damages may be appropriate based on the needs and goals of the non-breaching party.
It is essential to understand the details of contracts that govern business relationships and how to handle contract disputes should they arise. Contracts are an important foundation of most business transactions so it is helpful to be familiar with the ins and outs of how they work.
Source: Louisiana Record, “The Outlet Collection at Riverwalk owner alleges Gumbo Toys owes rent,” Nov. 21, 2016