A lawsuit over a breach of contract was filed in the U.S. District Court for the Northern District of California on May 18. The plaintiff, MicroTech, is suing the Autonomy unit of Hewlett-Packard Company for $16.5 million or the delivery of software that MicroTech says it paid for but never received.
Many lawsuits faced by California businesses are fairly straightforward and may be disposed of with little fuss, but others are far more pressing in nature. Serious legal issues can lead to lines of credit drying up and a loss of confidence among both suppliers and customers. If your business is being threatened by litigation or you feel that another party has not lived up to their contractual obligations, consulting with an attorney experienced in this area could be a prudent step to take.
Some California business owners may need a quick explanation of what a breach of contract is and how to resolve one. A breach of contract occurs when a party who has entered into a contractual agreement fails to fulfill one or more of the terms in the agreement. Suppose two parties enter into an agreement to manufacture a product, each party agreeing to provide specific parts by certain dates. The failure of one party to provide parts by the date specified would be a breach of contract.