Texas Energy Company Files Breach of Contract Suit

Forestech Energy, a renewable energy company, has recently filed suit against German Pellets for failure to uphold the terms of their contract. Forestech Energy saw an opportunity to branch out to the European market and saw partnering with the German company as a favorable move. German Pellets stated that they would be willing to help finance the business venture under the name "Texas German Pellets." Forestech then began to spend large sums of money in getting the project off the ground.

German Pellets failed to complete construction as was allegedly promised. The German facility has since failed to issue a recorded interest on behalf of Forestech and has also failed to pay Forestech a promised management fee. Forestech is now seeking damages for breach of contract, trade secrets and fraud, among other charges.

Breach of contract is a legal term used to describe the situation in which a legally-binding contractual agreement was not upheld either by one party or both. If convicted of this crime, it is considered a civil wrong. A breach can either be minor or material. A minor breach is only a partial breach of the contract while a material breach disables the entire contract from being upheld.

There are also fundamental and anticipatory breaches. A fundamental breach is grounds for termination of the entire contract. The wronged party in these cases can sue for damages because the breach caused some detriment. In an anticipatory breach, one party will declare that they do not intend to uphold their side of the agreement, before actually failing to do so.

Breach of contract, like the other allegations of trade secrets and fraud, fall under the realm of commercial litigation (also: business law). Arnold & Itkin LLP is experienced and prepared to take on business disputes such as this so that the wronged party can receive restitution.


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