An alleged default on a payment has led to a suit being filed against a company in a Southern state, according to local business news. The breach of contract suit is being filed against Prime 8 Offshore after accusations that the company did not live up to a previous agreement with The Grand LTD. Florida business owners recognize the severity of such a claim and how it can impact a business' reputation and sales moving forward.
According to the paperwork filed in a district court on May 29, Prime 8 entered into an agreement with The Grand in which it was stipulated that Prime 8 would purchase goods, services and merchandise from The Grand. However, after accruing a balance of almost $120,000, the plaintiff says the defendant defaulted on the payments. The window of time between default and claim filing is unclear at this point.
The Grand is now suing Prime 8 for breach of contract, with damages expected to total the full amount owed plus court costs, attorney fees and interest. The case is currently being overseen in a district court in the home state of both companies. So far, no final judgment has been reached.
A breach of contract suit can have dire repercussions for a business, as some Florida owners are aware. The implications of defaulting on a payment, as Prime 8 has been accused of doing, can lead to lost sales and reduced business opportunities as word gets out into the larger business world. It is ultimately best for both parties to either honor a business agreement or else seek mediation in redefining the particulars of the contract, should the original agreement cease to be acceptable to one or both parties.
Source: setexasrecord.com, "Prime 8 Offshore sued for breach of contract", Ben Hart, June 9, 2014