Breach of Contract: What To Do Next?
Businesses rely heavily on contracts. Almost every company uses some type of contract, whether with another business, a customer, or an employee. A breach of contract occurs when one party violates the terms of a legally binding agreement. When this happens, your business must respond carefully to protect its rights.
Currently, Uber Technologies faces a lawsuit over allegedly deceiving customers and improperly handling driver tips. Uber is a ride-hailing service where customers book a car through a smartphone app. Clients can pay their fare through PayPal and include a tip.
The federal lawsuit claims that Uber misled clients by stating that a 20 percent gratuity automatically went to drivers. Instead, Uber retained a significant portion of the gratuity. Clients argue that this practice forced drivers to return more funds to Uber than they should have, which constitutes a breach of contract and a violation of California consumer protection laws.
What Is a Breach of Contract?
A breach of contract happens when a party fails to honor their obligations. This may occur if a party:
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States it will not fulfill its contractual promise.
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Acts in a way that shows it cannot fulfill its promise.
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Conducts itself so the other party reasonably believes the contract cannot be completed.
Breaches happen frequently. When your business encounters one, consulting an experienced business litigation attorney is critical.
How Our Attorneys Can Help
Our attorneys at Van Egmond & Heitlinger, APC have extensive experience handling disputes between businesses. We actively protect our clients’ rights and use all available resources to resolve breaches of contract. We understand that a contract violation can seriously harm a business, regardless of size, and we aim to provide effective guidance and support.
For an initial consultation, call our office at (209) 876-8886.. Our team is ready to help your business address any breach of contract issues.