Legal Question in Business Law in Alabama

A very large corporation has breeched a contract with our company ( a small Woman owned telecommunications engineering company) by failing to notify of termination for convenience as required in the contract. In addition to the breech of contract they had also led our company to believe we would be continuing to work for them. We have special service packages for annual contract agreement for which the customer get significant reductions in rates and they used our company to get this lower rate by indicating that not only were we currently working for them but we would be contiuing to work for them so we invested in the process with personel and equipment and training both online and onsite (at customer locations in the south including Alabama, Mississippi, Florida, Georgia and others). The work removed form our company was also given to another contractor with no bid which is against their own stated policy. Our question is addition to the breech of contract what would constitute an intent to continue using our services. i.e what language or actions. Several people working for this corporation indicated verbally many times that work would continue and they wanted us to proceed in this manner. In other words keep giving them the discounted rates and unlimited service.

Before we file a suite for compensation we are asking the corporation to settle the matter by paying our company specific losses incurred due to the breech of contract and the their spoken word and actions that showed intent on continuing to use our company which required us to invest and prepare to continue working the lower rate annual package.

Thanks


Asked on 4/19/10, 9:50 am

1 Answer from Attorneys
James Coleman Murchison & Howard, LLC

Any contract action is going to be very much fact driven. If they made statements to you which they knew were false and you reasonably relied on those statements to your detriment they have comitted fraud. There are a lot of missing facts here. You need to retain an attorney, or at least sit down with an attorney and tell the WHOLE story. I suspect the action they took may have been allowed by the contract. If they are in breach, you may have a suit for damages. You will have to speak with an attorney to learn what your options are.

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Answered on 4/25/10, 1:36 pm


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