Businesses in North Carolina often make an agreement between one another that is meant for mutual benefit. They typically use contracts when working together to outline who is responsible for what and the details of the entire agreement. If one of the businesses fails to hold up its end of the bargain, it can be to the detriment of the other, costing both time and money. Some businesses will decide to file a breach of contract lawsuit against a former business partner. Those who do may have questions about precisely what is involved.
A contract is a legally binding agreement between two businesses. If one business does not complete its obligations at all or by a specified time or manner, that business can be considered in breach of contract. If any of these scenarios occurs, the business who did not perform as requested may be obligated to either complete the work requested by the other business or pay the other business financial remuneration for damages sustained.
Damages are the most common way that a business may be required to compensate a former partner. There are several different types of damages, and each can be beneficial for different situations. A business may also seek “specific performance,” meaning that the other business would be responsible for performing the previously outlined and agreed to duties. A business also could decide to cancel the contract altogether and request restitution, which puts the business back into the position it was in previously before the breach of contract occurred.
Any sort of business dispute can cost a company a great deal of money. North Carolina business owners who need more information on breach of contract lawsuits may decide to seek further advice on the matter. They have the right to follow this sort of action if they have experienced this situation.
Source: FindLaw, ““Breach of Contract” and Lawsuits“, , Sept. 2, 2014