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Do I have to pay for damages if an agreed upon contract is not signed?

By colmena | Uncategorized | Comments are Closed | 5 September, 2024 | 0

Chihuahua, Chih., 5 de Septiembre, 2024

 

In the day-to-day operation of your companies, suppliers are invited to participate in bids, negotiations are offers are extended that may culminate in the hiring or acceptance of such services and/or the execution of agreements of various kinds.

In certain occasions, the agreed upon services are cancelled or the agreement is not executed by the contracting party’s unilateral decision.

However, this legal firm strongly advises reviewing the offer and bid forms as well as sharing this information with the purchasing departments, as there are events where a service or product supplier may sue for the refund of expenses incurred in preparing to provide a service or to be able to comply with an agreement that was unilaterally cancelled by the contracting party without cause.

The foregoing is based on a precedent of a Federal Collegiate Court, which, has been used by suppliers to judicially demand the payment of damages caused by the contracting party who unilaterally breaks deals or negotiations without a just cause when these have reached the point where the signature of the agreement or acceptance was already imminent.

Therefore, our law firm is prepared to provide the necessary support to companies that require advice on this issue.

You can contact either, Rolando Castellanos-Macal at rcastellanos@iclmx.com; and Jorge Almanza-Ríos at jalmanza@iclmx.com; for any further information that you might require.

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