Also please view our clients Diversity News Magazine, Diversity News Radio, Steven Escobar and Diversity News TV Holiday Public Service Announcement at https://www.youtube.com/watch?v=lxgzJ8dz500&list=UU1y18rIpRl_ePPs1ORZayWQ
Check out the salaries of Salaries for Corporate Communicators: Average Salaries for Corporate Communications Professionals: 2014
So do you realize is better to hire independent public relations specialist then hiring them as your firm staff. You will save money by hiring an independent public relations specialist. Do the math.
Source: Public Relations Society of America
Welcome to our roster of clients: ANGELO TALEBI AND ANGELUS MEDIA GROUP
About Angelo Talebi:
Mr. Angelo Talebi is a renowned Investment Advisor Representative in the State of California and Certified Financial Planner, acclaimed multi-media producer, director, radio personality, film documentarian, entrepreneur, humanitarian and philanthropist. For more information visit http://angelotalebi.net/
ANGELUS MEDIA GROUP is a Beverly Hills based company, created by ANGELO TALEBI, who has MBA in finance from Lincoln University, Missouri and certificate in behavioral finance from Harvard University.
The company was created in order to be involved in different fields of businesses, from company investments, to management, from film production to event organizing.
We are pleased to be involved in Hollywood production, in documentary film making, in investing into and managing different european small scale businesses. For more information visit http://angelusmediagroup.wix.com/angelusmediagroupus#!
Billboard hit recording artist Fawn and world-renown DJ Chad Jack release their first holiday album. “Angels We Have Heard On High.” Proceeds to benefit Arme’s Beagle Freedom Project.
Virgelia Productions to presents the Crowning of the 26th annual Miss Asia USA and Mrs. Asia USA at Redondo Beach Performing Arts Center set for Saturday, November 22, 2014
We welcome you to the 26th annual Miss Asia USA and Mrs. Asia USA. We look forward to also welcoming our many guests and new friends coming from Saudi Arabia, Bahrain, Egypt, Dubai and Jordan.
Please join us in this amazing celebration and witness the crowning of the 2015 Queens.
Redondo Beach Performing Arts Center at 1935 Manhattan Beach Blvd, Redondo Beach, CA 90278.
Red carpet begins at 4:00 pm. (The event to have 3 red carpets: one for photographers, one for videographers and one VIP green room).
Show begins at 5:00 pm.
VIP. Show After Party – Buffet Dinner, Entertainment, Dancing and Hosted Bar to follow after the show.
For ticket inquiries you may text us
at 818 641 7779.
About Virgelia Productions: Are Event Planners and Event Producers. Virgelia Productions, Inc. is a certified minority and woman owned corporation. As event producers, Virgelia Productions Inc. is the producer and owner of the Federal Trademarks of the Miss Asia USA, Miss Teen Asia USA, Mrs. Asia USA, Miss Latina Global and Miss Teen Latina Global.
As event planners, Virgelia Productions, Inc. specializes in fundraisers, annual galas, fashion shows, pageants, corporate events and conferences. Committed to deliver memorable and successful events in the highest integrity and professionalism that will continue to exceed our clients, sponsors and audience expectations.
An award recipient of the Asian American Entrepreneur of the Year” Virgelia Productions Inc. is dedicated to contributing back to the community and supporting many of the non-profit organizations. For more information visit http://virgeliaproductions.com
This post is brought in part to you by: World Wide Vital Marketing & Public Relations Inc. (Click logo to visit website).
“A-list” actors are exceptionally successful, their notoriety extends beyond the silver screen, and their name guarantees a box office hit. Some “A-list” actors include: Will Smith, Brad Pitt, Leonardo DiCaprio, Angelina Jolie, Meryl Streep, and Johnny Depp. The “A-list” actors are usually made up of male actors as with more high earning positions.
“B-list” actors are usually television actors or less successful movie stars. Some “B-list” actors include: Nicholas Cage, Katherine Heigl, David Morse, Samantha Morton, and Pierce Brosnan. “B-list” actors usually never headline a film by themselves; this means the supporting actors are usually fairly notable too.
A “C-list” actor is a character actor that’s known by face and not by name. They are usually still good actors, but they receive less notoriety than an A or B-list actor.
“D-list” actors are the lowest on the celebrity hierarchy; they appear on celebrity game shows and reality television.
Celebrity refers to popular fame and public attention in the media, usually applied to a person, or group of people (celebrity couple, family etc.), or occasionally, to animals or fictional entities. Celebrity status is often associated with wealth (commonly referred to as fame and fortune) and fame can often provide opportunities to make money.
Successful careers in sports and entertainment are commonly associated with celebrity status. People may also become celebrities due to media attention for their lifestyle, wealth, or actions, or for their connection to a famous person.
A-list is a term that alludes to major movie stars, or the most bankable in the Hollywood film industry or to major recording artists, major international sports stars or miscellaneous occupations such as the most successful film directors, certain high profile media and entertainment moguls and the most notable international TV broadcasters.
The A-list is part of a larger guide called The Hot List that has become an industry-standard guide in Hollywood. James Ulmer has also developed a Hot List of directors.
The Ulmer scale categorizes the lists into A+, A, B+, B, C, and D listings.
About Sylvia Johnson Kittrell: Graphic Design and Illustration Artist at Sylvia’s Graphic Creations.
Sylvia Johnson is an accomplished Graphic Designer skilled in all aspects of design and proficient in Adobe Photoshop and Illustrator.
Ms. Johnson has received special recognitions by the City of Los Angeles Mayor Eric Garcetti, Mitch O’Farrell, Councilmember, 13th District and County Board of Supervisors of the City of Los Angeles for her graphic design work with the Multicultural Motion Picture Association and American Society of Young Musicians.
She was recently appointed to the Board of Directors of the Multicultural Motion Picture Association and American Society of Young Musicians by Jarvee Hutcherson, President of MMPA and National President of ASYM.
Sylvia Johnson Kittrell is the Creative and Graphic Design Director of Diversity News Magazine and Diversity News Publications as well other divisions and subsidiaries of Diversity News Publications Family of Companies.
Ms. Johnson resides in Atlanta, GA but works with clients nationwide. To inquire about her work, please contact her at: firstname.lastname@example.org or visit her facebook fanpage at http://www.facebook.com/Sylviasgraphiccreations
Congratulations to our client Multi-Award Winner Steven Escobar of Diversity News Magazine Nominated for 2014 LGBT Hero Awards.
Please go online and visit website at http://www.lgbtheroawards.com/nominees.html and vote for him. Look for section “ONLINE MAGAZINE OF THE YEAR”: Diversity News Magazine by Steven Escobar to vote.
Remember that you are welcome to vote once a day. The last day to vote is on Friday, August 22, 2014, at midnight (Pacific Standard Time).
About LGBT Hero Awards:
Their mission is to help provide an inclusive and well rounded representation of the LGBT community by honoring heroes who play influential roles that contribute to the well-being of the LGBT community. The LGBT Hero Awards is an annual ceremony that recognizes the accomplishments of Gay, Lesbian, Bisexual, and Transgender individuals who have dedicated their lives to the world of entertainment, art and community, politics, public health, and business. The annual ceremony also recognizes the efforts and contributions of celebrities and personalities who are allies of the LGBT community. For more information visit http://www.lgbtheroawards.com/mission.html
About Esteban “Steven” Escobar: Esteban A. Escobar (born in El Salvador, Central America on September 6th) is an award winning American journalist, reporter, editor, columnist, writer, producer, director, publicist, radio personality, entrepreneur, accounts receivable specialist, humanitarian and philanthropist.
Esteban is known as Steven Escobar. He is the President & Executive Editor-In-Chief of Diversity News Magazine, an online & special print consumer news magazine that is is available worldwide and can be viewed free by millions of visitors each month.
On November 2013 Steven Escobar founded and is currently the Chief Executive Officer of Diversity Professional Business & Media Solutions Group Inc., a company to help small businesses to be complaint with changes in technology and have a presence online. On July 2013 he founded and is the CEO of Diversity Recovery Systems, a professional consulting and account receivables third party company specializing in healthcare medical collections.
Esteban “Steven” Escobar is also the executive producer and director of Diversity News TV, the host of Diversity News Radio, on Air with Steven Escobar, and the president of Diversity News Publications, a news/entertainment multimedia firm in Hollywood, CA. Steven Escobar owns E.E.Enterprises, an affiliate of The Diversity News Publications family of companies.
Steven Escobar is currently contributor writer for CNN.com and special reporter for Tehran International Weekly Magazine. Esteban “Steven” Escobar is a former official contributor/writer for the Hollywood and Los Angeles County events examiner for Examiner.com and contributor for Yahoo.com distributed via Yahoo Voices.
Steven Escobar is currently the account executive and media liaison at World Wide Vital Marketing & Public Relations Inc. Steven Escobar’s current professional affiliations and memberships include being a member and media partner of the Filipino American Chamber of Commerce Los Angeles, (Gay and Lesbian Entertainment Critics Association) GALECA with voting and membership rights on The Dorian Awards. Because of his goals and aspirations in the media publishing business, Steven Escobar has acquired skills in new media including marketing and public relations. Steven Escobar believes that his success in the media/publishing empire is from all the collaboration of his local, national, and international team of reporters and photographers, and he thanks them.
Steven Escobar is no stranger to the entertainment industry. He has covered many prestigious events in Hollywood. Some of them are the 2009 Outstanding Emmy Awards Nominees, 2010 American Music Awards, 2011 American Music Awards, 69th Annual Golden Globe Awards Nominees Announcement, 43rd NAACP Image Awards, 44th NAACP Image Awards, 12th Annual Latin Grammys Nominees Announcement, 2012 NCLR ALMA Awards, and the 2014 Golden Globe Awards.
Steven Escobar also gives back to the community by helping charities. From 2003 to the present, he has been raising money and awareness for AIDS Walk LA benefiting AIDS Project Los Angeles through team Diversity News 3960. Also in 2011 Steven Escobar raised money for The Life Group LA. Steven Escobar has volunteered for Exotifit For Humanity and The Human Rights Campaign Los Angeles Steering Committee. Steven was nominated for The Shorty Awards 2011 and the People’s Choice Fan Award 2012. In 2012 Steven Escobar received the Humanitarian Award at the 2012 International Noble Awards. Also on June 2, 2012 Steven Escobar Received the Community and Humanitarian Services Award at Kayamanan Bayan for all his contributions to the Filipino American community in Southern California. On 12-12-12 Steven Escobar received an award for the Most Fascinating Person of the Year. On August 4, 2013, Steven Escobar won the 2013 EOTM (Entrepreneurs On the Move) Award for Outstanding Internet Talk Show Diversity News Radio on Air with Steven Escobar. Yahoo.com named Steven Escobar one of the Hot 500 contributors during the month of March 2012 from Yahoo! Contributors.
On March 1, 2014 Steven Escobar received the following awards from City of Beverly Hills: The Diversity Award Certificate of Recognition by the City of Beverly Hills City Council, County of Los Angeles by the Board of Supervisors of the County of Los Angeles and City of Los Angeles Certificate of Recognition signed by the Mayor of Los Angeles Eric Garcetti for his participation and contributions to the Multicultural Motion Picture Association (MMPA).
Steven Escobar has been in the USA since 1989 and has 2 sisters and a mother. Steven Escobar currently resides in Los Angeles County in the city of Hollywood, CA. For more information visit http://stevenescobar.diversitynewspublications.com/ or his IMDB at http://www.imdb.com/name/nm4164655/
Public relations codes of ethics
IABC Code of Ethics for Professional Communicators PRSA Code of Professional Standards
Because public relations has roots in journalism and many of its practitioners were once journalists, there is an unfortunate tendency to apply journalism standards to public relations. It is, however, misguided and unfair to both professions. Despite using similar skills, the two fields are fundamentally different and seek different ends. Their ethical standards are also very different. That should not be interpretted as meaning that one of them is better than or worse than the other; they’re just different, and it is important to understand those differences.
PR and journalism have some similarities, but . . .
The Society of Professional Journalists (SPJ), the Public Relations Society of America (PRSA), and the International Association of Business Communicators (IABC) ethical guidelines all agree about the importance and value of such key concepts as truth, accuracy, fairness, human rights, freedom of speech, and democratic principles. But, that can be somewhat misleading.
The underlying differences between public relations and journalism are far more basic and far more critical than these similarities in what they value.
According to their own professional codes and standards, there are fundamental differences in whom they represent and whose well-being they most directly serve.
Journalism serves the general public, and journalists are expected to act in the public’s best interests even if such actions have detrimental effects on their employers.
Public relations, in contrast, serves the specific organization or client who is paying the practitioner to build and manage relationships that help that organization/client achieve its goals.
Principled public relations practitioners and organizations such as PRSA and IABC which they have established are quick to append the caveat that even though public relations is meant to serve the needs of its clients/patrons, practitioners are simultaneously expected to refrain from any action that would have a deterimental effect on the general public.
Given this fundamental difference in orientation, it’s inevitable that the specific standards which govern practitoners actions would have to be different. As stated in the lead paragraph, this doesn’t mean that one set of standards is inherently better or worse than the other. Nor does it mean that one group of professionals is more or less ethical than the other. What it does mean is that practitioners should be judged by the standards of their own profession and not by those of another field.
Some actions that are very appropriate and commendably ethical for a public relations practitioner would be viewed very differently and be condemned as unethical by the SPJ if they were performed by a journalist. Conversely, some highly regarded practices in journalism would be considered inappropriate and unprofessional according to PRSA or IABC standards if they were performed by a public relations person.
Journalists primarily serve the public’s right to know.
Begin your comparison of the differences in journalism and public relations ethics by reviewing the Society of Professional Journalist’s Code of Ethics at the following Web site.
SPJ Code of Ethics
It outlines and explains the mainstream professional view of what are currently considered to be the acceptable norms of behavior for reporters, photographers, editors and other journalists working in the United States. But, don’t jump immediately to the lists of prohibited behaviors and don’t focus solely on the distinctions between what’s acceptable and what’s unacceptable. Start with the preamble and get a clear sense of to whom the professional journalists say they owe their primary allegiance and what they see as their over-riding purpose. Then you can go on to consider the values journalists say they espouse in more detail and in an appropriate context.
Accepting the code at face value, the needs and interests of the public always come first. They are even supposed to be placed before the needs and interests of the journalists’ employers.
Public relations people primarily serve their clients’ needs.
The clearest evidence of the difference between journalism and public relations’ standards and values is found in the Public Relations Society of America’s Code of Professional Standards which is on-line at the following link.
PRSA Code of Professional Standards
Wade through the introductory comments until you reach the PRSA Member Statement of Professional Values which “presents the core values of PRSA members and, more broadly, of the public relations profession,” presumably in order of importance. It clearly indicates that advocacy for clients/employers is the primary purpose and value of public relations. It does, however, also noted that this advocacy should be done responsibly and in the public interest.
Other public relations related organizations’ codes of ethics used to be similarly explicit, but all have undergone revision — and, in my personal opinion, watering down — within the past decade. They now seem less open and less willing to admit public relations’ role as an advocate for its clients and to have an over-inflated — and perhaps unrealistic — emphasis on “the public welfare”.
Consider, for instance, the following statement from the pre-1995 International Association of Business Communicators Code of Ethics:
“Communicators should encourage frequent communication and messages that are honest in their content, candid, accurate and appropriate to the needs of the organization and its audiences. (emphasis added)
Now, compare that concise, direct statement to the current but much more ambiguously worded International Association of Business Communicators Code of Ethics for Professional Communicators. Although the practitioner’s obligation to the client is frequently implied or alluded to in this version of the code, it isn’t fully and directly admitted anywhere.
IABC Code of Ethics for Professional Communicators
For better or worse many professional codes have been recently revised.
Why, you might ask, did so many professional organizations, including PRSA, IABC, and SPJ, change their codes of ethics during the 1990’s?
In part, it was because many of the codes were old and hadn’t been reviewed or revised in decades. Revisions were overdue.
In part, it was because of legal concerns that grew out of a few high-profile lawsuits that disgruntled practitioners filed against professional organizations which had publicly cited them or imposed sanctions on them for violating ethical standards. The professional organizations lost some of these cases and were held liable for damaging the individual’s professional reputation. The reasons for these courtroom losses were attributed to the belief that the then-existing codes of ethics were unenforceably vague and/or lacking in due process protection for alleged violators.
And, in large part, the changes were undertaken out of concern for the profession’s image and its reputation. They were, quite simply, changed for public relations purposes.
To read more on Public Relations Society of America code of ethics click on picture.
Examples of a Code of Ethics for Business
A code of ethics, also called a code of conduct or ethical code, sets out the company’s values, ethics, objective and responsibilities. A well-written code of ethics should also give guidance to employees on how to deal with certain ethical situations. Every code of ethics is different and should reflect the company’s ethos, values and business style. Some codes are short, setting out only general guidelines, and others are large manuals, encompassing a huge variety of situations.
The Kraft code of ethics contains just 10 short rules of ethical behavior that all employees must follow. The introduction to the Kraft code of ethics suggests that employees should let values guide their actions in all cases. The code also stresses that if something seems wrong, it should be addressed directly. The code includes a speaking-up policy that requires employees to speak up if they are aware of any violations of the code, even those they have committed themselves. The 10 rules are: Make food that is safe to eat; market responsibly; treat people fairly; respect the free market; compete fairy; respect the environment; deal honesty with the government; keep honest books and records; never trade on inside information; give Kraft Foods your complete business loyalty.
The Verizon code of ethics is a lengthy document that contains four short core values, followed by 16 pages of specific rules and guidelines to follow in certain situations. The core values are integrity, respect, performance excellence and accountability. The specific guidelines cover situations, such as how to deal with workplace violence, alcohol use and harassment. They also cover areas of integrity and fairness, such as how to avoid conflicts of interest and how to safeguard company information. There is also a section on protecting Verizon’s company assets, including what to do in cases of sabotage and how to create accurate records.
The Colgate-Palmolive code of ethics is a long document, but is broken down into individual areas of conduct. The code is intended as a guide to all daily business interactions and is used in conjunction with the company’s business practice guidelines. The code covers 10 areas, including: Our Relationship with Each Other; Our Relationship with the Company; Our Relationship with Consumers; Our Relationship with Government and the Law; Our Relationship with Society and Our Relationship with the Environment.
Baylor College of Medicine
The Baylor College of Medicine, in Houston, has a short code of ethics that sets out basic rules and refers employees to other guidelines for more detail. For example, the code instructs all employees to follow Baylor’s Mission Statement, Compliance Program and Conflict of Interest policy. The code includes basic guidelines for how employees should handle business conduct; financial and medical records; confidentiality; Baylor property; the workplace environment; and contact with the government.
Professional Codes of Ethics
Codes of ethics are statements of principles agreed to by professional organizations that are intended to guide members in moral decision making. The statements are designed to aid individuals as they navigate their daily professional lives, and to reassure the public and their clients that the profession as a whole adheres to high standards of conduct and has a system of accountability for those who do not conform.
As a general rule, any self-regulating profession that serves the public has a duty to adhere to a professional code of ethics. Occasionally the requirement to belong to the professional group and follow its code of conduct is laid out in legislation, as is the case with professionals guided by the rule of law, including doctors, dentists, lawyers, police officers, social workers and psychologists. However, other professions, such as journalism and public relations, develop codes of conduct voluntarily to engender public trust and goodwill toward their chosen field, and to encourage uniform ethical standards and professionalism within their ranks.
Public relations professionals have several roles. They disseminate information on behalf of their clients, provide advice about the public impact of their clients’ decisions and help resolve conflicts between both parties. These roles require PR professionals to constantly balance the needs of their employers against the public’s right to honest and fair dealing. As such, ethical dilemmas are part of their daily practice and professional codes of conduct can provide guidance and enhance public trust in the public relations profession. These codes invariably demand honesty, accuracy, loyalty and principles of fairness and non-competition among members, however each professional organization refines its own code according to the environment in which it operates.
Discussion about the need to enforce a code of ethics for public relations professionals intensified in the early 1990s, following revelations about questionable testimony during United States congressional hearings in the lead-up to the first Gulf War. A 15-year-old girl known only as “Nurse Nayirah” provided evidence to the Human Rights Caucus of the United States Congress in October 1990, suggesting that while volunteering as a refugee in the maternity ward of a hospital in Kuwait City, she had witnessed Iraqi soldiers throwing babies out of incubators and leaving them to die. The testimony was important to the George Bush administration of the time, which was urging military intervention in Kuwait where Saddam Hussein’s Iraqi army had invaded and exiled the Kuwaiti government. The girl’s story about “incubator babies” was widely reported and used at least a half a dozen times in presidential speeches intended to build domestic support for the assault on the Persian Gulf, which went ahead in 1991.
Following the war, human rights groups challenged and eventually discredited this critical testimony. The girl was revealed as Nayirah al-Sabah, a member of the Kuwaiti royal family, in fact the daughter of Saud bin Nasir Al-Sabah, Kuwait’s Ambassador to the United States. Her testimony was connected to a group called Citizens for a Free Kuwait, an organization that spent millions of dollars hiring Washington’s biggest PR firm, Hill & Knowlton to win support for the Kuwaiti cause.
Public relations professionals acknowledged that the troubles surrounding Hill & Knowlton tarnished the reputation of the industry as a whole, prompting calls for PR firms and their employees to be held accountable for failing to adhere to the code of ethics prescribed by the Public Relations Society of America, the industry’s largest membership group. The PRSA’s code of ethics requires members to report ethical violations when they occur, and the PRSA board has the power to discipline or expel members for failing to live up to its code, however, membership in the PRSA is not a prerequisite for practicing as a PR counsel.
The Public Relations Society of America (PRSA) is one of dozens of professional PR trade associations in countries around the world, including theCanadian Public Relations Society, the Public Relations Institute of Ireland and the Chartered Institute of Public Relations in the UK, all of which have their own code of conduct for members. Most belong to the Global Alliance for Public Relations and Communications Management , an organization that seeks to share ideas and ethical best practices among its members.
The Global Alliance provides sound guidance for member agencies on ethical behavior through its Global Ethics Protocol on Public Relations, written in 2002. Member societies have incorporated the principles of this protocol in their own codes of ethics.
The Global Ethics Protocol contains, among other things, a declaration that members work to enhance the reputation of the PR business by remaining objective and by accepting a duty to a broader society than the client he or she represents.
It also requires members to pledge:
- To conduct ourselves professionally, with integrity, truth, accuracy, fairness, and responsibility to our clients, our client publics, and to an informed society;
- To improve our individual competence and advance the knowledge and proficiency of the profession through continuing education and research and where available, through the pursuit of professional accreditation;
- To adhere to the principles of the Global Protocol on Ethics in Public Relations. (1)
The protocol also requires members to adhere to high standards of honesty, integrity, expertise and loyalty in their work.
The Chartered Institute of Public Relations (CIPR) in the UK recently added an advisory note its code of conduct to include Social Media Guidelines, warning members about special issues pertaining to networking sites on the Internet. Social networking sites including blogs, facebook, twitterand youtube are widely used and trusted by many target market audiences, and allow information to be circulated globally in rapid fashion. The CIPR encourages members to maintain its standards of honesty and non-competition while using social media, and warns them about the danger of misusing intellectual property, violating disclosure agreements, the possibility of defamation and invasion of privacy.
While PR groups do set out codes of ethics for their members, it is difficult to enforce them. Many PR professionals simply don’t belong to trade groups, and neither do their employers. Membership of these groups is composed of individuals, not companies or organizations, which means companies that operate unethically from a public relations perspective are beyond reproach.
Learn About Broken Oral Agreements
Every day, oral contracts are made with no intention or even feeling that they need to be written down. This may happen in person or over the phone for services or products like utilities, car insurance, or deliveries. The parties orally have agreed to the terms. Or an insurance agent may have interpreted the written contract to say that everything is covered under the policy. That constitutes a contract that is just as binding as a written one.
Many state and federal laws exist to ensure enforcement of oral contracts. While all important contracts should be written, oral contracts are often a convenient and commonly used form of agreement between people or companies.
What is an oral agreement?
If problems or disagreements should arise, the main problem with an oral contract is that the case becomes one person’s word against the other. Some states may have laws (called statutes of frauds) that regulate the type of property or amount of money an oral contract can involve. States also have a statute of limitation on any contract.
Was there an offer and acceptance? A meeting of the minds?
Contracts are not valid until there is an offer and acceptance. A meeting of minds occurs when all parties agree to the material or important terms and conditions of the deal. Usually, this means that if major points such as price are not agreed upon, there is not a binding contract. On the other hand, if the major points are agreed upon, the need to work out minor details or specific contract language may not prevent a meeting of the minds.
Value of the Agreement
In any contract, each side must give the other something of value for the agreement to be binding. This could be an exchange of money such as a down payment or a mutual promise of some future benefit.
When to Seek Legal Advice
The essential problem with oral contracts is that they can be difficult to prove and enforce. The party who chooses not to honor its bargain will claim that no agreement was ever reached or insist that the agreed-upon terms were not as claimed. The case may be decided on whatever evidence is available – notes that were made at the time, witness recollections of what was said, emails, even plain common sense. This is why anything in writing, even doodle filled notepads and backs of envelopes, suddenly take on huge significance.
Learn About Breach of Contracts
In a perfect business world, agreements would be entered into, both sides would benefit and be pleased with the outcome, and no disputes would arise. But in the real business world, delays happen, financial problems can crop up, and other unexpected events can occur to hinder or even prevent a successful contract from being carried out. Following is a discussion of the legal concept of “breach of contract,” and your options should such a breach occur.
What is a “Breach of Contract”?
A business contract creates certain obligations that are to be fulfilled by the people or companies who entered into the agreement. In the eyes of the law, a party’s failure to fulfill an end of the bargain under a contract is known as a “breach” of the contract. Depending on the specifics of the contract, a breach can occur when a party fails to perform on time, does not perform in accordance with the terms of the agreement, or does not perform at all. Accordingly, a breach of contract will usually be categorized as either “material” or “immaterial” for purposes of determining the appropriate legal solution or “remedy” for the breach. [More on legal remedies for breach of contract can be found below.]
To illustrate how a breach of contract might happen in the real world, assume that R. Runner contracts with Acme Anvils for the purchase of some of its products, for delivery by the following Monday evening. If Acme delivers the Anvils to Runner on the following Tuesday morning, such a breach of the contract would likely be deemed immaterial, and R. Runner would likely not be entitled to money damages (unless he could show that he was somehow damaged by the late delivery). However, assume now that the contract stated clearly and explicitly that “time is of the essence” and the anvils MUST be delivered on Monday. If Acme delivers after Monday, its breach of contract would likely be deemed “material,” and R. Runner’s damages would be presumed, making Acme’s liability for the breach more severe, and likely relieving Runner of the duty to pay for the anvils under the contract.
What Happens After a Contract is Breached?
When a breach of contract happens (or when a breach is alleged), one or both of the parties may wish to have the contract enforced on its terms, or may try to recover for any financial harm caused by the alleged breach.
If a dispute over a contract arises and informal attempts at resolution fail, the most common method used to resolve contract disputes and enforce contracts is through lawsuits and the court system. If the amount at issue is below a certain dollar figure (usually $3,000 to $7,500 depending on the state), the parties may be able to use “small claims” court to resolve the issue.
Courts and formal lawsuits are not the only option for people and businesses involved in contract disputes. The parties can agree to have a mediator review a contract dispute, or may agree to binding arbitration of a contract dispute. These out-of-court options are two methods of “alternative dispute resolution.”
No matter what avenue is chosen to remedy a breach of contract, the non-breaching party will most likely be entitled to some kind of remedy under the law.
Remedies for a Breach of Contract
When an individual or business breaches a contract, the other party to the agreement is entitled to relief (or a “remedy”) under the law. The main remedies for a breach of contract are (1) damages, (2) specific performance, (3) or cancellation and restitution.
The remedy that is most often used for a breach of contract is the remedy of damages — payment in one form or another, made by the breaching party to the non-breaching party. There are many kinds of damages, and generally speaking damages may be very specific to the kind of breach that has occurred. Following are some guidelines on damages.
Compensatory damages aim to put the non-breaching party in the position that they had been if the breach had not occurred.
Punitive damages are payments that the breaching party must make, above and beyond the point that would fully compensate the non-breaching party. Punitive damages are meant to punish a wrongful party for particularly wrongful acts, and are rarely awarded in the business contracts setting.
Nominal damages are token damages awarded when a breach occurred, but no actual money loss to the non-breaching party was proven.
Liquidated damages are specific damages that were previously identified by the parties in the contract itself, in the event that the contract is breached. Liquidated damages should be a reasonable estimate of actual damages that might result from a breach.
Specific Performance. If damages are inadequate as a legal remedy, the non-breaching party may seek an alternative remedy called specific performance. Specific performance is best described as the breaching party’s court-ordered performance of duty under the contract. Specific performance may be used as a remedy for breach of contract if the subject matter of the agreement is rare or unique, and damages would not suffice to place the non-breaching party in as good a position as they would have been had the breach not occurred.
Cancellation and Restitution. A non-breaching party may cancel the contract and sue for restitution if the non-breaching party has given a benefit to the breaching party. “Restitution” as a contract remedy means that the non-breaching party is put back in the position it was in prior to the breach, while “cancellation” of the contract voids the contract and relieves all parties of any obligation under the agreement.