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Breach of contract leads to lawsuits after project called off

Creating a contract for employment is very important when companies begin on a project. However, contract disputes can easily arise when one or both parties do not follow the guidelines set forth in their agreements. When a breach of contract occurs, a vast amount of money and time could be lost, and companies may wish to pursue legal action in order to gain some sort of compensation for the defunct agreement.

Georgia business owners may be interested in a situation in a neighboring state in which a developing company is seeking litigation against a city commission for calling off a project less than a month before the developers were set to begin construction. The project had reportedly been contemplated for almost 20 years and dealt with the renovation of a high school that had been built in 1927. The school would have been turned into a sort of event center, but the commission apparently changed their minds about going through with the project.

As a result, the developer has filed a lawsuit due to breach of contract and is seeking millions in compensation. The claims state that the developing company lost value due to the time and effort put toward working on the project. The commission has stated that it was a "hypothetical" project depending on whether the developing company was able to secure the proper funds for the project. The company claims that the funds were raised, but the project was discontinued anyway.

A breach of contract is a very serious matter as time and money are what make or break a business. If one of the parties decides to discontinue or commits any other type of violation of the contract, the time and effort lost by the other party can cause significant damage to their business. Information on Georgia business laws could be helpful to business owners who find themselves in a contract dispute.

Source: Sun Sentinel, Lawsuits delay Old Boynton High School renovation project, Attiyya Anthony, Aug. 23, 2013

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