Q: Do I have a claim against the other party to my New York contract if the other party terminates the agreement in order to avoid making payments?
While many contracts between parties in New York will be carried out favorably and without incident, there are also many that will not. Unfortunately, parties to a contract sometimes fail to uphold their end of the agreement or attempt to terminate the contract prematurely. One such example involves allegations by a former party to a contract with internet giant Yahoo, Inc.
In this recent New York breach of contract action, the plaintiff is the owner of a company that was bought by Yahoo. He was allegedly promised a certain amount of money, including bonuses, during the merger. However, he asserts that Yahoo rushed to terminate the agreement prior to having to pay him the agreed upon compensation.
Whether or not the plaintiff in the Yahoo claim, or any other party to a New York agreement, has a valid claim for breach depends upon the specific facts and circumstances of the case. Generally, however, the courts will consider the following:
- Did the defendant have the option to terminate the agreement?
- Did the defendant have to provide notice prior to terminating? If so, did the other party comply with these requirements?
- Is the contract enforceable under New York contract law?
- What obligations did the plaintiff have under the agreement prior to receiving payment from the defendant?
- Did the plaintiff uphold his or her obligations under the contract?
- What were the obligations of the defendant under the contract?
- What was the nature and extent of the harm suffered by the plaintiff as a result of the defendant’s breach?
To learn more about a breach of contract claim, contact a New York business litigation attorney today. Call our office at (888) 497-3410 for a consultation.