Non-compete agreements, which are sometimes referred to as “restrictive covenants,” are highly debated and, sometimes, hotly contested (in court). Many states (like California) take the position that they are unfair to rank-and-file employees, while other jurisdictions (such as Florida) contend they are necessary for providing small businesses a fair shake in free enterprise. Even though...
In the past, we’ve discussed some of the issues which can arise when a party has difficulty performing the terms of a contract completely. For instance, we’ve discussed the concept of substantial performance. Today, we’re going to discuss another related concept: impossibility. Whenever a contract is breached, the question always comes up: how will the...
Recently, we discussed the concept of liquidated damages in breach of contract cases. Liquidated damages are something which every business owner should know about. Nearly every business owner will come across these clauses at one point or another. As we know, liquidated damages are a fixed amount of compensation which is mutually agreed at the outset of...
A derivative action is a lawsuit brought by a corporation’s shareholders on its behalf against a third party. Usually, this third party is an inside member, such as a director or board member. Shareholder derivative litigation 101 doesn’t have to be rocket science. Let’s go through some of the basics. Most jurisdictions require that the...
In some of our recent posts, we have touched on damage recovery in breach of contract cases. Having at least a basic understanding of damage recovery can be very valuable for business owners. At some point in your business career, you’re going to encounter a breach of contract, and it’s important that you understand how...
Recently, we discussed the topic of damage recovery by examining the well-known case of Hadley v. Baxendale. As we saw in that case, damage recovery in breach of contract cases is limited by the principle of foreseeability, such that damages must be reasonably foreseeable to be recoverable. We will continue to look at core contract law...
The free market can certainly be ruthless for small businesses. The competition, however fierce, has to be fair, though, and businesses who have recognized commercial relationships with other businesses deserve to operate within the scope of those relationships without a third party meddling in their affairs. Claims for breach of contract are fairly straightforward, but...
The classical notion of lawsuits and litigation is that the defendant has to pay money (damages) to the innocent party as a court-ordered remedy. To be sure, this is the most common remedy, but there are instances in which other remedies are more appropriate. In business litigation–and, specifically, breach of contract claims–injunctive relief is sometimes...