Category Archives: Legal

Esteban Steven Escobar Files For Diversity News Magazine Domain Name Trademark

It is official our very own Esteban Steven Escobar Files For Diversity News Magazine Domain Name Trademark.

Diversity News Magazine dot com December 2011

Diversity News Magazine dot com December 2011

FOR IMMEDIATE RELEASEDiversity News Media Brands formerly Diversity News Publications publisher of Diversity News Magazine Org and Diversity News Magazine Dot Com files for Diversity News Magazine Dot Com trademark with the USPTO.

Mr. Esteban Escobar aka Steven Escobar who is the owner and founder of Diversity News Magazine Dot Com files for company name and domain trademark. During July – September 2019, Mr. Escobar was not able to pay the renewal fees to GoDaddy immediately due to financial hardship and litigation going at the moment. When Mr. Escobar was ready to renew its domain on September 2019. GoDaddy has already sold the domain to a guy overseas from Punjab, Pakistan who is a domain squatter.

Immediately Mr. Escobar registered the domain name Diversity News Magazine Org. While consulting with his colleagues and friends on ways to get back his Diversity News Magazine Dot com domain. Mr. Escobar was advised to trademark his domain name which he has done.

For your information, the domain squatter will first perform searches on the availability of domain names, which include business names, brand names, trademark names, or anything he or she feels will be valuable to the company willing to pay for. If it’s available, the individual buys the domain name, with the intent of selling it at a higher price to the owner of the business or the brand.

Diversity News Magazine November 2019

Sarah Jones who is currently violating our trademark domain name is a been a cybersquatting participant.

Please note that she is not an employee, not an agent, not consultant, not a representative or is not part of Diversity News Magazine.com neither DiversityNewsMagazine.org or any other subsidiaries of Diversity News Media Brands. We ask that to be aware of possible fraud and scams where we are not to be held liable or responsible for the individual cybersquatting tactics.

Archive org Diversity News Magazine November 2019 page 2

Archive org Diversity News Magazine November 2019 page 2

For those people who does not know what Cybersquatting means, it means the practice of registering names, especially well-known company or brand names, as internet domains, in the hope of reselling them at a profit. It also means registering, trafficking in, or using an Internet domain name with bad faith intent to profit from the goodwill of a trademark belonging to someone else. The term is derived from “squatting“, which is the act of occupying an abandoned or unoccupied space or building that the squatter does not own, rent, or otherwise have permission to use.

So after purchasing the domain, the Pakistan domain squatter man contacted Mr. Escobar asking to give him access to his Diversity News Magazine Gmail account and wanted all his Diversity News Magazine social media accounts such as Facebook, Twitter, YouTube, Instagram, LinkedIn etc.

The Pakistan middle east man offered Mr. Escobar $100 US Dollars for all his social media profile pages. However, this Pakistan domain squatter did purchase Diversity News Magazine Dot com because he needed to make a quick buck.

The Pakistan cyber squatter has read online that Mr. Escobar needed money. The Pakistani Cyber squatter tried to Cybersquatting Mr. Escobar by asking him to sale all his social media profile accounts including Gmail for $100 US dollars.

Mr. Escobar very well knows that his social media pages are worth more than $100 US dollars in fact he knows some of his pages are worth thousands of dollars. Our Diversity News Magazine logoDomain squatting is illegal. A domain squatter is blocking the rightful owner of the trademark or brand from acquiring the domain name and using it to increase his or her internet visibility.

The law looks at domain squatting as similar to holding a property (the domain name) in order to raise ransom, and it is considered a trademark infringement. If a domain squatter can’t prove a legal intent in owning the domain name, it is considered to be a bad faith registration, and he or she is considered guilty of domain squatting. Diversity News Magazine City of Los Angeles awardFor those who does not know what Cybersquatting means, it means the practice of registering names, especially well-known company or brand names, as internet domains, in the hope of reselling them at a profit.

The Pakistani guy contacted Mr. Escobar via Facebook and Twitter. One time the Pakistan man asked Mr. Escobar to buy back Diversity News Magazine Dot Com from him for a higher price. Diversity News Magazine Summer-Fall Special Print Issue Featuring Bobbie Shaw Chance Acting Coach to the Stars 7-1-16 to 9-31-16.Mr. Escobar has been keeping an eye on his domain and because he keeps getting emails from former readers, partners, affiliates and colleagues asking if he is still in charge of Diversity News Magazine Dot Com. So after consulting with various colleagues, on 3-31-2021,

Mr. Escobar decided to trademark Diversity News Magazine name and Diversity News Magazine Dot Com domain. Diversity News Magazine Dot Com and Diversity News Magazine Org are Mr. Escobar companies in the US. Mr. Escobar tells us that lots of middle east people are desperate to make a quick buck so they do this kind of illegal things.

Mr. Escobar advices anyone reading this press release to secure your intellectual properties because out there in the battle field are desperate rats! who trying to benefit on others hard work.

To the individual that purchase Diversity News Magazine Dot com domain from the domain squatter you know that’s illegal and if you are a good person, you should have contacted Mr. Escobar directly but not been a desperate rat with no brains to start your own media site!

Perhaps you haven’t read the newspaper or seen the news online on how companies reach to each other to purchase to make offers and an end buying legally those media companies.

DiversityNewsMagazine dot com with trademark register logo

DiversityNewsMagazine dot com with trademark register logo[/caption] So the Pakistan worm domain squatter man researched Mr. Escobar’s Diversity News Magazine Dot com and Diversity News Publications Dot com domains.

The Pakistan worm domain squatter man found out that Mr. Escobar is been investing, running and promoting Diversity News Publications and Diversity News Magazine since 2003 to the present which is over 18 years. Diversity News Publications and Diversity New Magazine are known and recognized in Southern California by many organizations including government officials.

In fact Diversity News Publications and Diversity New Magazine has received multiple awards and nominations in Southern California from non profit organizations and government officials.

Hollywood Star Recipient and Actress Kate Linder from The Young and the Restless featured on Diversity News Magazine

Hollywood Star Recipient and Actress Kate Linder from The Young and the Restless featured on Diversity News Magazine[/caption] Mr. Escobar wants to set the record clear that yes in deed he is the owner and founder of Diversity News Magazine, DiversityNewsMagazine.com name and domain.

Diversity News Publications Dot Com and Diversity News Magazine Dot com were founded in 2003 in Los Angeles, CA. The name Diversity News Publications which owns Diversity News Magazine Dot com was a registered business entity in the City of Los Angeles and as well Diversity News Magazine. Diversity News Media Brands formerly Diversity News Publications is the publisher of Diversity News Magazine Dot Com and Diversity News Magazine Org.

So Diversity News Magazine is known as a company name and a trademark as well. His founder and owner Mr. Esteban Escobar aka Steven Escobar is known for those company and domain names.

If you Google Diversity News Magazine Dot com and Diversity News Publications Dot com you will find that Mr. Steven Escobar information is listed along in various website directories as the owner and publisher with his contact information such as emails and telephone number.

Also lots of marketing and public relations organizations email their press releases for publication to Mr. Escobar to be published on his domains Diversity News Magazine Dot com, Diversity News Publications Dot com and Diversity News Magazine Org.

So now that the United States Patent and Trademark Office has published that Mr. Esteban Escobar has filed for the trademark DIVERSITY NEWS MAGAZINE – DIVERSITYNEWSMAGAZINE.COM.

Mr. Escobar issue a Trademark Infringement – Cease and Desist and Domain Trademark Infringement – Cease and Desist to the known Registrar and Hosting companies as well the contact in the domain Whois database which is mostly hidden as private. So Mr. Escobar received a response from the person that may have bought Diversity News Magazine Dot com from the worm Pakistan domain squatter. The person is refusing to cooperate by transferring Diversity News Magazine Dot com to Mr. Escobar hosting company. Also one of the hosting companies representative has responded stating that the trademark is not true enforceable because is in process at the USPTO.

Diversity News Magazine CA State Assembly award

Diversity News Magazine State of CA Assembly award

Mr. Escobar just want his the infringement person or individuals to stop using his domain name.

Mr. Escobar is the one who has expended many years and thousands of dollars on Diversity News Magazine Dot com in the domain marketing, SEO, performance and online footprint.

He would not do something like that if he is not interested on it. So the domain squatter knew what he was doing just to get a quick buck.

Mr. Escobar bumped with a woman of the name of Sarah John who has is hiding her identity. Mr. Escobar thinks Sarah John may be the one that make a deal with the worm Pakistan domain squatter by buying the domain from him. That makes Sarah John a domain squatter herself! For those of you reading this press release let me tell you that Sara John or any aka’s she may use is not the owner of Diversity News Magazine Dot com

We have requested proof of registration and ownership from Sara John and she haven’t comply neither is not cooperating. Sara John keeps infringing Mr. Escobar trademark name. Sara John Cybersquatting is illegal and you must transfer the domain to Mr. Escobar because he never gave up on his domain.

To those individuals or companies that are paying or sponsoring Sarah John to publish guest articles on Diversity News Magazine Dot Com I ask to stop because Sara John is not the owner of the trademark Diversity News Magazine neither an agent, nor an employee of Diversity News Magazine.

Mr. Escobar will ask the Icann organization to shut the website down if Sarah John doesn’t transfer to him before the end of July 2021.

Diversity News Magazine & Steven Escobar City of Los Angeles award

Also please note that Sara John or whomever she is affiliated does has any rights and do not own Diversity News Magazine dot com and be cautions of fraud or scams.

Mr. Escobar does not want to consider a lawsuit against the infringer, but he is considering shutting down website Diversity News Magazine Dot Com.

That only thing Mr. Escobar wants is his domain name to be transfer to his hosting company name Free Hosting at (502) 791-5340 You can also contact Mr. Escobar at his cellular 213-321-9408 or email to: diversitynewsmagazine@gmail.com

### PRESS & MEDIA CONTACTS:

Alex Leon, VP and Director of Marketing & PR

IHW Digital Marketing and Public Relations TEL: (213) 867-1997

https://ihwwdmpr.wordpress.com/ worldwidevitalpr@gmail.

Editor’s NOTE: Partial press release first appeared on PR Log at https://www.prlog.org/12878341-diversity-news-media-brands-publisher-files-trademark-for-diversity-news-magazine-dot-com-domain-name.html

Professional Journalists, Public Relations and Communications Codes of Ethics

codeofethics

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
http://www.spj.org/ethics_code.asp

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
http://www.prsa.org/codeofethics.html

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
http://www.iabc.com/members/joining/code.htm

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.

PRSA_RGB logo

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.

Kraft

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.

Verizon

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.

Colgate-Palmolive

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.

Ethical Codes in Public Relations

Origins of PR ethics and the Hill & Knowlton controversy

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.

Professional Public Relations Groups

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.

Global Ethics Protocol on Public Relations

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.

Impact of Social Media

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 blogsfacebook, 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.

Difficulties Enforcing a PR Code of Ethics

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 and Breach of Written Contracts

breach of agreement or contract

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 policyThat 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.

Damages

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.