When two or more parties enter into a lawful business contract, the conditions and stipulations of that contract are binding. If one of the signed parties refuses to honor the contract or fails to perform any action or service required by the contract, it is sometimes grounds for legal action against the party deemed in violation of the agreement. Such breach of contract claims were recently filed by Wencel Worldwide Inc. against Resource Automotive Company in Illinois.
In the recent case, Wencel signed a contract with Resource Automotive. The contract stipulated that the marketing agency would provide a website through which the auto company could advertise and sell its used vehicles. The contract was to remain active from June 2010 through April 2014. The marketing agency now claims that the automotive company attempted to modify the arrangements of the contract by withholding commission payments before the final date of the contract was realized.
Wencel has asserted that the withholding of commissions has caused it to incur a $500,000 debt. The legal claim recently filed against Resource Automotive is seeking retribution of $500,000 plus any further financial relief that the court may determine appropriate. The claim states that the automotive company was in breach of its contract because it did not follow through on the signed agreement.
Similar breach of contract claims are filed in Illinois and other jurisdictions across the country. Those considering filing such a claim against a party or parties allegedly in violation of the terms of a contract might want to first seek legal consultation in the matter. It is typically beneficial to act under the guidance of a business and commercial law attorney who has an understanding of state and federal laws and can help determine how best to proceed under the circumstances.
Source: cookcountyrecord.com, “Wencel suing Resource Automotive over website contract breach allegations“, Kevin Shepke, Aug. 28, 2015
