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Microsoft accuses Samsung of breach of contract

In Colorado and anywhere in the United States, readers know that a contract is made when two people or entities decide to enter a business agreement. Before a business contract is signed, each party thoroughly studies the contract and requests revisions if needed. Both parties know that once the contract is signed, they must abide by what is written on the contract. Failure to do so can result in business litigation, which can be difficult to settle.

Long before Samsung became the world's leading supplier of android phones, the tech giant entered a business agreement with Microsoft. For quite some time, the partnership between Microsoft and Samsung flourished until the latter suddenly decided to stop paying for the patented Microsoft technology. Because of this, Microsoft filed a lawsuit against Samsung in a New York federal court, alleging a breach of contract. According to Microsoft, Samsung stopped its payments after Microsoft's deal with Nokia was sealed last year. Microsoft still wishes to settle the contract dispute with Samsung and continue their business partnership.

When a contract dispute reaches court, it typically means that negotiations between the two parties have failed. Business owners should note that litigation can be costly, and it is strongly advised to try negotiation and other alternative options. During contract disputes, the people involved should review what is written on the contract to determine if they have violated the contract. When it comes to large companies, business owners may hold a meeting with stock owners to determine how to proceed with the case.

Protecting the best interests of the company is the utmost priority in any contract disputes. To prevent losses, business owners may seek sound legal advice to know how to handle the case.

Source: Industry Week, "Microsoft Sues Samsung for Breach of Contract," Agence France-Presse, Aug. 4, 2014

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