The idea behind a contract is that it is an enforceable agreement. Because someone must either perform under the terms of the contract or pay damages, they should not be entered into lightly. The assumption is that if someone has signed a contract, he or she means to abide by it. If he or she breaches the contract, however, he or she could be found liable for damages.
When it is a business that breaches a contract, those damages might be quite high. In the case of a San Francisco architecture firm alleging that a Hawaiian company terminated its contract even though it was satisfied with the designs presented by the firm. In essence, the firm is asking for $40,000 to cover the work that it says it performed but for which it was not paid.
For California businesses engaged in contractual disputes, an experienced business law attorney can review contracts and provide advice on the types and amount of damages that may be available. In this case, the architecture firm not only wants monetary damages for its unpaid work, but also for the company to stop using the copyrighted designs the firm originally provided.
The company argues that the firm had failed to perform under the terms of the contract, which prompted it to terminate the firm and seek out new architects.
Contractual disputes can be extremely complex and often are heavily dependent on the facts of the case, which means they are incredibly difficult for companies and businesses to handle without the help of a lawyer. Plus, the risk of making a mistake during a breach of contract lawsuit could mean losing out on considerable damages.
Source: Pacific Business News, “California architect sues Highway Inn alleging breach of contract,” Duane Shimogawa, Oct. 8, 2013