No matter the kind of business deal you want to make, you should create a contract between the involved parties. Among other things, you will want to establish the length of the contract, define any financial obligations and include terms of recourse if someone breaches that contract.
In many situations, contracts seem clear-cut. However, a dispute can arise when one party feels another did not fulfill their contractual obligations. Such is the case with the ongoing breach of contract dispute between Michael Jackson’s estate and HBO.
The contract dispute between HBO and Michael Jackson’s estate continues
In February, the Jackson Estate filed a lawsuit against HBO for allegedly breaching a contract they had with the late performer. But while HBO faces nearly $100 million in damages, they reportedly argue they did not breach their contract.
The 1992 contract in question allowed HBO to use footage from one of Michael Jackson’s concerts. It also prevented them from shedding a negative light on the entertainer.
Both parties are working on resolving this dispute. However, you might be interested in how you could avoid potential problems related to leaving things open to interpretation when you enter into a business contract.
Create a specific contract to minimize your chances of a future dispute
Contract litigation can be costly, drawing both time and money away from growing your business. However, establishing a clear contract in the first place may be well worth the effort in the long-run.
Before signing a contract, be sure to:
- Specify details in writing
- Establish when the contract will end
- Determine how potential disputes will be resolved
Hopefully, a well-drafted contract will guide your business interactions accordingly. But if you do face an alleged breach of contract, you can rely on your established document to defend your interests in court.