In business, it is important to honor all legal contracts since people in Massachusetts and elsewhere depend upon the terms of a legal contract being honored by the other parties. However, if one party to the contract does not follow through on promises, this could cause problems and even financial losses for other parties involved. This is why Ashton Kutcher's television company is currently suing the Department of Motor Vehicles (DMV) and the government in another state for breach of contract.
The television company accuses the DMV of failing to follow through on promises to allow the company to film a reality show at a number of the DMV's field offices. A court judge recently ruled against the state in an attempt to dismiss the lawsuit. This means that the television company will be allowed to move forward with its litigation against the DMV and the state.
Along with breach of contract, the complaint filed by the company also includes allegations of promissory estoppel. This legal concept states that one party to a contract should not be allowed to break a promise if the other party reasonably relied upon the promise. The agreement was allegedly made in May 2011, while the lawsuit was filed in mid-June of 2012 in a California court.
Although it is unfortunate, many misunderstandings such as this case occur while doing business in Massachusetts or elsewhere. If a breach of contract action is possible, the plaintiff may be able to obtain some type of reimbursement for his or her loss. The defendant, on the other hand, also has rights which he or she can defend in the court of law. For both the plaintiff and defendant in a contract dispute, it is important to have a firm understanding of contract law.
Source: Culver City, CA Patch, "Court Rules Ashton Kutcher's Company Can Sue DMV for Breach of Contract," Jan. 7, 2013