Business disputes occur every day in the United States. Among the many reasons for business litigation breach of contract is one of the most common. A breach of contract occurs when one party fails to fulfill their obligations under a legally enforceable agreement. When this occurs the party not in breach may decide to either have the terms of the contract enforced or seek financial damages for any harm suffered.
According to a recent news report Multnomah County, Oregon alleges that it lost almost $2 million after a Colorado company allegedly failed to perform its end of a software development contract. According to the County, Colorado Customware failed to deliver on its agreement to create software for the Department of Assessment, Recording and Taxation, despite numerous amendments made to the contract's time frame.
Colorado Customware won the $4 million contract back in 2009 and last May officials for the company told the County it would stop working on the project unless another payment was made. Colorado Customware had already been paid $2 million. The County subsequently ended the project. County attorneys now plan to sue Colorado Customware for breach of contract and negligence in an attempt to recover its $2 million.
Whenever a business finds itself facing a contract dispute the first step is generally to attempt to negotiate an amicable solution through informal talks. If such negotiations and informal talks should fail, companies may end up resolving their disputes in court. While litigation is not the only type of conflict resolution that is available to companies it is often the most common method used when business contract disputes arise.
Source: Oregon Live, "Multnomah County taxpayers out $2 million after Colorado Customware software bungle," Kelly House, March 5, 2014