New Jersey readers may be interested to know that Oscar winning actress Octavia Spencer has recently sued a weight loss company for breach of contract. The company, Sensa, sells weight loss products that are sprinkled on people’s food to help them feel full faster. According to reports, Sensa and Spencer had an agreement where Spencer agreed to be a company spokeswoman.
In the $1.25 million contract, Spencer agreed to represent the company. Reports say, however, that Spencer refused to do before and after photos, participate in tabloid ads and disclosed the sponsored relationship when talking about Sensa products on social media. Despite losing 20 pounds and speaking positively about the company, Spencer still brought a suit.
According to Spencer, the company is refusing to pay her $700,000 which she is owed under the contract. In addition to the breach of contract claim, Spencer is also alleging fraud. She claims that Sensa is upset that the campaign wasn’t successful and is blaming her for the company’s failure.
A breach of contract occurs when the terms of a contract are not upheld by one of the parties. In every contract, each party will be under some sort of obligation. These obligations could include paying money, providing a service, providing a product or any similar promise.
When a breach of contract occurs, New Jersey businesses have a few possible remedies. One, they can ask a court for damages – usually monetary relief that would make it as if the breach didn’t occur. Two, businesses can ask for specific performance. In these cases, the court would force the other party to perform under the contract. Finally, they can ask the court to cancel the contract.
In contract disputes, New Jersey businesses should understand their legal rights and all the potential remedies so they can get the best possible resolution to the case. Otherwise contract litigation could ensue costing companies time and money.
Source: The Huffington Post, “Octavia Spencer Sues Sensa For Breach Of Contract, Allegedly Refusing To Pay Her $700,000,” Aug. 30, 2013
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