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San Jose breach of contract attorneyMost contracts that your business signs will be fulfilled without issue. The weekly cleaning service keeps your office spotless, and you pay them on schedule. You provide technology services to your customers that meet or exceed the specifications defined in your contract, and your customers give you plenty of lead time to implement changes and are never late with a payment.

But what happens when one party fails to meet their contractual obligations?

Defining Breach of Contract: Material Versus Non-Material

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San Jose breach of contract litigation lawyerWhen two parties agree to combine their respective resources or knowledge in a business venture, it is important to first draft, finalize, and sign a legally binding contract. Retaining outside counsel experienced in the practice of business contracts may be a good way to avoid the later need for business litigation. One recent example of a contract litigation case illustrates the importance of creating a clear and enforceable contract.

Video Game Royalties Subject of Suit and Countersuit

The Grand Theft Auto series of video games is one of the most popular and successful examples electronic entertainment in the past few decades. However, both sides of the team responsible for the development of the games are facing lawsuits stemming from a royalties contract that is alleged to have been breached.

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Silicon Valley breach of contract attorneyLegally binding contracts are a vital element of doing business, regardless of the industry in which one operates. Agreeing to and formalizing the criteria under which a business relationship will proceed provides a measure of protection for everyone involved. However, when one party fails to abide by a signed contract, it is important to understand the steps one might take to restore order.

Types of Contract Breaches

Business contracts are put in place for a variety of valid reasons. Companies place employees, contractors, suppliers, distributors, researchers, and other contributing parties under contract in an effort to build, maintain, and protect a competitive edge in the marketplace. When a contract is broken, it usually falls into one of the following categories:

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Verizon is having some serious problems with its workers. Last August, Verizon's contract with workers of two unions which represent employees that deliver critical services, such as repairs, landline service, installation and customer service. The workers continued to work as the union worked towards a solution with the company, but the workers' patience has run out. They went on strike recently, meaning that some 39,000 people are no longer supporting the critical services mentioned above.

It sounds as though work location and job security are critical issues for workers, and there will certainly be a lot for the company and the unions to go over before a new agreement can be reached.Â

Back in 2011, a similar situation occurred with about 45,000 Verizon employees going on strike for about two weeks.

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Just to the north of us here in California, the state of Oregon and the tech company Oracle have been locked in a contract dispute over the state's healthcare website which was "botched," according to the source article. Oracle blames the state for mismanagement, while the state accuses Oracle of fraud and racketeering. The state of Oregon is asking for $6.5 billion in damages as a result of their botched healthcare website.

An interesting development in the case is that confidential documents that were sealed under court order were released to the public through a reporter. Oracle contends that the state of Oregon allowed this to happen, tipping off the reporter and helping her to publish the information. Oracle also contends that the case was already settled last year for $25 million, but that the state is lying about the deal not happening.

The details of the botched website aren't necessarily the point of this post (though they obviously are important in the grand scheme of things). For the purposes of this post, we would like to highlight that businesses can face legal action from a variety of sources and for a variety of reasons.

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