A previous post talked about how a farmer in another state recently won over $20 million in a suit over an exclusive supplier agreement. To take a step back from this post, and as the name implies, an exclusive supplier agreement is one in which an entity which needs products, like chili peppers, enters in to an agreement with another business to provide them on an exclusive basis.
According to recent reports, a farmer in another state is celebrating after a jury awarded his family business $23.3 million in a breach of contract lawsuit. At one point, the farmer had been the exclusive supplier of certain chili peppers for Huy Fong Foods, Inc., the business which manufacturers several hot sauces, including a popular Sriracha sauce.
Businesses of all shapes and sizes are run largely by a series of legally binding agreements, or contracts. Any given South Florida business likely has a number of contracts with other firms, including suppliers, creditors and business partners and affiliates.
Entering into a contract may seem like a routine task in the business world; however, the terms of each of these agreements must be understood. More importantly, these terms must also be followed. The failure to adhere to these contracts could cause a business contract to no longer benefit the company but harm it instead. Whether it is individuals, businesses or a mixture of parties, it is important to understand what can be done if a contract dispute arises.
Whether it is a small business or large corporation, the backbone to any business dealing is a contract. These may seem fairly simple and straightforward; however, when a party to a contract does not uphold their end of the deal, this can create issues. In some cases, a breach of contract does not only invalidate the contract but cause harm to the non-breaching party.
When a Coral Springs business owner opts to rent a commercial space to use for their business, they may take special precautions to ensure that their interests are protected in their commercial lease agreement. The agreement may cover a range of terms and conditions that provide guidance on how differences and disputes may be resolved. To this end, a person may wish to begin their analysis of this question by reviewing their own lease agreement.