Drawing up contracts during employment negotiations can be a helpful tool for all parties involved to better understand what each side may expect. However, if an employment contract is not abided by, a serious situation could occur for those offering services and those who were wishing to receive them. In many cases, legal action may be sought by one or both parties, depending on the specific circumstances.
A legal situation has come about against the Seminole Tribe of Florida after an advertising company claims the tribe did not honor a contract. The company which filed the lawsuit claims that an agreement was set up between the company and the tribe in order for the business to handle advertising and promotions presumably for tribal events. However, the tribe allegedly turned those duties over to a tribe member.
The company also claims that significant amounts of money were already invested into the projects for the Seminole Tribe. As a result, the company is seeking $250 million dollars in reparations from the tribe for damages. A representative for the tribe made a statement suggesting that the lawsuit was "frivolous."
Because an employment contract often signals that a service will be carried out and compensation will be paid for those services, companies can face considerable monetary damages if a party backs out of the contract. As the advertising company involved in this situation decided to take legal action, they could potentially receive compensation for their losses if their case is successful. Information on Florida employment laws dealing with contracts could help them develop a meaningful case.
Source: Miami Herald, Suit seeks $250M from Seminole Tribe over contract, No author, Jan. 10, 2014