Michael L. Feinstein, P.A.

Contract disputes can lead to lawsuits to address damages

In efforts to grow their businesses, many companies create agreements with other companies. Often, there is some mutual benefit to the agreements that can help all parties involved reach certain business-related goals. However, not all new partnerships work out, and in some cases, a fall-out could lead to contract disputes.

Florida readers may be interested in a recent lawsuit filed by Midwest Express Airlines after ending a partnership with Elite Airways. According to reports, the two companies had created a partnership agreement in August of last year, at which time Midwest Express paid a deposit to Elite Airways. It was unclear what exactly the deposit was for. Nonetheless, the agreement indicated that Midwest Express would use Elite Airways to operate its initial flights while Midwest handled customer service.

In December, Midwest Express decided to terminate the agreement with the other airline, which was an option included in the initial contract. However, the contract also stated that Elite Airways would have to return the deposit to Midwest Express no matter which party terminated the agreement. Midwest claims that Elite only returned a portion of the deposit, which has led to Midwest filing a lawsuit for breach of contract against the other company.

Contract disputes can be difficult to handle. Fortunately, the terms of the agreement can be used to indicate exactly how the violating party did not stick to the contract. If Florida business owners have faced breach of contract issues, they may wish to look into their legal options for handling the predicament as best as possible.

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