Almost all businesses have some contract — in one form or another — that they are a part of. There are contracts between companies, contracts between a business and a customer, leases, and employee contracts, among others. These contracts define how a business should act under a wide array of business situations.
One reason that New Jersey businesses enter into contracts is that it ensures that each party to the contract will actually do what they are promising to do. If one party backs out, or fails to adequately perform then a breach of contract has occurred and the other parties can seek damages. Breach of contract is a common contract dispute.
Famous singer Mary J. Blige has recently been sued for breach of contract for allegedly failing to perform under the terms of one of her contracts. According to the suit, the singer had contracted with Vision Entertainment Worldwide to perform a concert. Under the terms of the contract, Blige had been paid $145,000 as a deposit.
According to VEW, Blige cancelled a few days before the scheduled show. Instead of performing for them, VEW claims that Blige performed elsewhere with Mick Jager and the Rolling Stones. VEW is seeking damages of at least $145,000.
One of the benefits of having a contract is that one party cannot back out of the deal just because they have found a better offer. Once a contract has been negotiated and signed, the parties are obligated to perform. By refusing to perform, a party could face legal consequences including a breach of contract suit. The breaching party could be responsible for any costs the other side has incurred because of the breach. Furthermore, the court could prohibit the breaching party from performing elsewhere during the contract’s term.
Source: The New Age, “Mary J. Blige sued for breach of contract,” June 19, 2013