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When California contract disputes involve the bidding process

California business is often comprised of various entities signing agreements regarding services, purchases, management or other contractual arrangements. To avoid contract disputes, it is crucial that all interested parties understand the legal terms therein so as to be able to fulfill their obligations and responsibilities accordingly. Even when it seems that all signatories understand an agreement, there are often situations where one party will claim another has breached a contract.

One company, for instance, is currently suing a state liquor commission. The company says that the commission went against bidding rules by offering a competitor a sweet financial deal on a 20-year contract. The contract in question is said to be worth $20 million.

The president of the company claims that the New Hampshire Liquor Commission disclosed certain bits of information to some bidders that were not made available to the company. He further stated that had the company been more appropriately informed, it could have increased its chances for winning the contract. Typically, it is understood within the competitive bidding market, that all potential bidders must receive the same information before entering their proposals.

The company suing the Liquor Commission has requested $53 million in damages. The trial, which is expected to last more than a week, will determine whether the state stands in violation of bidding regulations. Any California business person facing similar contract disputes can discuss the situation with a business and commercial law attorney to determine the best course of action to take obtain a fair resolution in court.

Source: concordmonitor.com, "Liquor Commission contract dispute goes to trial", Jeremy Blackman, May 23, 2016

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