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Breach of Contract: Conflicts between Two Parties |
Article Submitted by: Mesriani Law Group
Friday, 22 January 2010
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A breach of contract, also known as a default of contract means one party's failure to comply with his responsibilities under a contract.
There has to be no legal valid excuse in doing so. It can occur by either the failure to perform as agreed, making it impossible for the other party to perform or the repudiation of the contract (announcing the intent to not comply with the obligation).
Circumstances
• Failure to perform
• Contract breached by making performance impossible
• Partial breaches a contract
• Breach by repudiation
Sports breach of contract
In Boston, Nike and the Naismith Memorial Basketball Hall of Fame were sued by SportsFuzion Inc. They claimed they were cut out of Nike in relation to Michael Jordan's induction into the Hall of Fame.
They said they have the right of claim over the new line of Jordan sportswear. And the Nike and Naismith Memorial violated the contract which says it gave the exclusive licensing right to the Hall of Fame's logos, trademarks, designs and photos for use in sportswear.
The lawsuit seeks damages more than $10 million. "Nike is expected to release its Air Jordan Hall of Fame collection this summer, ahead of Jordan's induction into the Hall of Fame in September," according to the Associated Press' reports.
Furthermore, SportsFuzion, Inc. said Nike and the Hall of Fame conspired to take them out of the deal.
Airline breach of contract
Meanwhile, in New York, the Mesa Air Group Inc. fought Delta Air Lines Inc.'s attempt to end its contract with the regional airline and Mesa subsidiary Freedom Airlines Inc.
Delta filed a lawsuit to end the Delta Connection Agreement with Mesa and Freedom because of breach of contract. But according to Mesa, they are denying the basis for Delta's request. Mesa cleared that it "intends to vigorously defend its rights" and expected the next action is to countersue Delta. Furthermore, it accuses Delta of "bad faith actions" and breach of contract.
Tobacco breach of contract
Tobacco firms R.J. Reynolds Tobacco Co. (manufacturer of Camel cigarettes) and Lorillard, Inc. (Newport menthol) are against the Family Smoking Prevention and Tobacco Control Act. They, along with other tobacco companies, filed a suit in District Court in Bowling Green, Kentucky recently.
The act gives the Food and Drug Administration (FDA) the authority over tobacco. The tobacco companies said that the provisions violate their right to free speech. Furthermore, they said that the provisions of the law "severely restrict the few remaining channels we have to communicate with adult tobacco consumers."
In the act, FDA can reduce nicotine in tobacco products, forbid candy flavorings and block labels. And it will require the Tobacco companies to put large graphic warnings on the cigarette cartons.
The companies argue that this will affect their point-of-sale and direct mail advertisements. Among other companies who joined were the National Tobacco Co., Discount Tobacco City & Lottery Inc., and Kentucky-based Commonwealth Brands Inc. (owned by Britain's Imperial Tobacco Group.)
Although, the Congress didn't ban the cigarettes or nicotine despite of the number of health risks and deaths it can cause consumers.
The argument now lies on the issues that the industry allegedly hides their products contents that might be detrimental to one's health. They also commit wrong advertising to sell their cigarettes to consumers.
Article Source: http://www.ArticleBlast.com |
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To help you resolve business disputes such as breach of contract, consult with our experienced business lawyers. Log on to our website and dial our toll free number for legal assistance.
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