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Without a settlement, contract disputes can end up in court

On behalf of Kadish & Associates Law Group posted in Contract Disputes on Friday, November 20, 2015.

It is standard procedure for many Arizona companies to enter into contracts with other companies that can provide them with services or goods needed in their day-to-day operations. Vendors are most often compensated in accordance with the agreements and, sometimes, in advance. When contract disputes arise, most companies attempt to resolve the issues informally, but when that is not possible, the injured parties may take the problems to court.

TransMontaigne Product Services, which is based in another state, entered into an agreement with ExxonMobil Gas & Power Marketing Company. ExxonMobil was to provide propane to the company. TransMontaigne claims that ExxonMobil breached the agreement when it failed to provide propane to the company for at least a year. The company says this caused it to incur financial losses for which it holds ExxonMobil responsible.

ExxonMobil, a division of ExxonMobil Corporation located in southeastern Texas, claims that an unforeseeable accident forced the suspension of its operations. It is claimed that this is why the company was unable to provide the plaintiff with propane for an extended period of time. Supposedly, the accident excused ExxonMobil from performance under the contract.

Whether that is true remains up to the court in which this lawsuit was filed. Similar contract disputes occur in Arizona as well. Regardless of whether a company is the plaintiff or defendant in a breach of contract dispute, attempting to navigate the legal system without assistance could cost a company more than it has already lost. Therefore, it is beneficial to enlist the advice and assistance of an attorney familiar with the law governing contracts.

Source:, “Insurance company alleges ExxonMobil committed breach of contract”, Robbie Hargett, Nov. 13, 2015

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