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Hertz did not receive proper services in breach of contract claim

On Behalf of | May 10, 2019 | Contract Disputes |

There are various different contracts that companies enter into in Florida. Some of these contracts involve buying tangible goods and products from another company. Other times the company is paying another company to perform various services for the company. However, business contracts oftentimes involve large sums of money, and companies expect that the contracts will be followed. They expect that they will receive what they paid for when they entered into the contract.

Hertz car rental company claims that the marketing company that they hired to update their website and mobile apps did not do what they were hired to do. Hertz filed a breach of contract lawsuit against the marketing company after paying $32 million for services that were never provided. The launch of various aspects of the project were delayed and the marketing company asked for hundreds of thousands more to complete a part of the project that was a part of the original contract. They also failed to develop a product that would be compatible with all aspects of Hertz’s business.

When companies breach contracts, it can leave the non-breaching party in a difficult situation. The company not only needs to figure out how they will complete the project they were working on, but they also lose any money they already paid. The non-breaching company may be able to recover damages for their losses in some situations. The damages can include recovering any money they already paid plus any additional money they spent rectifying the breach of contract.

The hope is that when companies enter contracts in Florida that both parties will fulfill their obligations under the contract and both companies will benefit from it. However, this does not always occur, and sometimes companies breach the contract. When this occurs the non-breaching party may need to file a lawsuit to receive the compensation they deserve. These can be complicated cases. Experienced attorneys may be able to guide one through the process.