Most, if not all, businesses heavily rely on contracts. These legally binding agreements allow businesses to control costs and ensure revenues.
In the event of a breach of contract, the wronged party can take legal action to either seek specific performance of the contract's terms or compensation for damages caused by the breach.
This issue is taking center stage in a recent dispute between the Louisiana High School Athletic Association and a t-shirt maker. According to reports, the t-shirt maker, Talk'N T-Shirts, claims that it had a contract with the LHSAA that rendered it an exclusive partner with regard to printing and selling clothing with LHSAA logos and trademarks. The t-shirt maker has filed a breach of contract lawsuit against LHSAA, claiming that it breached this contract by apparently hiring other companies to print or sell apparel with LHSAA logos and trademarks.
The details of the case are scant at this time, especially since the LHSAA isn't commenting on the pending litigation. However, this case serves as an excellent example of the power of contracts. If the t-shirt maker's claims are accurate, then it holds a lot of power over the LHSAA's actions with regard to clothing production and merchandising. An exclusive agreement, if one exists, may provide this t-shirt maker with a significant means of income. It's no wonder, then, that they are taking legal action. After all, that's the best way for it to protect its financial interests.
Contract disputes are common in the business world. Sometimes, these disputes can be resolves relatively quickly without the need for court intervention. In other instances, though, these cases are taken to court and only end when a judge or jury decides whether breach of contract has occurred. Regardless of the direction of a case, those parties that are involved need to do everything they can to protect themselves and their interests, which is why it is usually advisable for them to work with a business law professional they trust.