People enter into a contract to make sure that both parties are in agreement with a particular decision, and they consider the contract to be binding. However, when one side fails to uphold his or her end of the bargain -- known as a breach of contract -- the other party may be hurt in the process and feel violated in Florida. This is the situation that one racing company is facing after it claims it lost millions of dollars due to another party's failure to uphold agreed-to standards and show due honesty.
In this out-of-state case, one racing company called Panther Racing Inc. has filed a suit against a second racing company, named Rahal Letterman Lanigan Racing, as well as against IndyCar, which sanctions championship car racing series. Panther said it had the exclusive right to offer rights for access to Fan Village -- a fan community -- to the Army National Guard. This was stipulated in its contract with IndyCar.
However, Panther said IndyCar's CEO drafted a letter saying that Rahal actually had the right to provide Fan Village Access instead. Thus, IndyCar allegedly breached the contract. As a result, Panther lost a sponsorship with the Army National Guard that was worth more than $17 million. Panther wants IndyCar to be held liable for the economic damages stemming from the reported breach.
A breach of contract takes place when one party does not comply with the business agreement it had with another party. In this type of situation, the court will rule that a breach of contract indeed did occur if it can be proved that the value of the contract was destroyed and that the victim suffered financial loss as a result. Victims of an alleged breach of contract can rightfully seek to protect their interests in Florida.
Source: Indianapolis Business Journal, Panther sues IndyCar, Rahal Letterman over sponsor deal, No author, March 3, 2014