Running a successful business takes a lot of hard work. Once certain milestones have been reached, company owners may feel ready to expand their products or services. In some cases, this endeavor may mean creating contracts with suppliers in order to meet their needs. However, issues may arise if a breach of contract occurs.
Arkansas residents may be interested in this type of issue currently underway in another state. Reports indicate that a family-owned business that produces frozen desserts had entered into a contact with another company to have that company supply them with ice cream for their ice cream sandwiches. As part of the contract, the ice cream was supposed to contain 14 percent butterfat. Later, the family-owned company began receiving complaints that the ice cream sandwiches did not taste as good as they once did.
The family-owned business believes that the ice cream supplier breached their contract by failing to provide ice cream with the correct percentage of butterfat. The supplier apparently would not disclose how much butterfat they had been using in the ice cream, so the other business had the ice cream tested and found that it only contained 10 percent butterfat. As a result, they have filed a lawsuit against their supplier for breach of contract as they believe the substandard ice cream cost them millions of dollars.
As this situation shows, a breach of contract can be a costly issue for a company. If Arkansas businesses have faced similar issues, they may want to consider taking legal action of their own. Speaking with their legal counsel about their options may be beneficial in this type of predicament.