On behalf of H. Clay Parker, Esq. posted in Business Litigation on Wednesday, May 17, 2017.
An intriguing contract dispute is brewing between Sears and One World Technologies, a subsidiary of a Chinese company called Techtronic Industries that manufactures the tools under the Craftsman brand. The CEO of Sears wrote a blog post recently that alleges some serious and nefarious behavior on the part of One World Technologies. In the post, the CEO claimed that One World Technologies was trying to embarrass Sears and leverage legal action to force them to change the terms of the contract they have together.
The allegations are vague, so it is difficult to get into details here. But what we do know is that Sears has paid One World Technologies $868 million over the nine years that their contract has been active.
Companies that establish a working relationship under a contract often want, or even need, to change the terms of that contract. Doing so in a constructive manner can foster good relations between the two companies and expedite the legal process by which that contract gets changed.
Whether the allegations in this Sears-One World dispute are true or not, it highlights an important aspect to business contracts: not every contract is fulfilled or followed. Sometimes businesses have other intentions or interests that they seek out. When a contract is under dispute or breached, the victimized company needs to take appropriate legal action to defend itself and to hold the other company responsible for their decision to violate the terms of the contract.
Source: Business Insider, “Sears tanks after CEO eviscerates top tool vendor he says is trying to cancel its contract,” Hayley Peterson, May 15, 201