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Contract disputes stem from end of exclusive business arrangement

| Feb 16, 2020 | Contract Disputes |

There may be a multitude of companies in Florida and elsewhere who have entered into an agreement to be the exclusive provider of another entity’s products and services. While such an arrangement may have the potential to prove fruitful for both parties, it could also run the risk of leading to intense levels of conflict should the exclusive part of the deal suddenly cease to exist. A building supplies company in another state has engaged in contract disputes with a supplier after claiming the company violated the terms of an exclusive distributing agreement.

According to reports, Hallmark Building Supplies says it entered into an arrangement to be the sole provider of of decking supplies manufactured by the company MoistureShield in 2017. Hallmark says it placed a substantial inventory soon thereafter, even agreeing to take on left over supplies from a previous distributor in the process. Several months later, the company claims it learned that MoistureShield was taking steps to sell its products through other outlets.

Hallmark asserts that it attempted to reach out to the company and negotiate terms to keep the arrangement intact. However, the company says MoistureShield decided to cancel the arrangement after undergoing a change in ownership. Hallmark representatives assert that the incident has caused the company significant financial harm, leaving it with more than $600,000 of unusable inventory that the other company refuses to repurchase.

When business relationships turn south, any resulting contract disputes can create complex scenarios that can be difficult to resolve. Business owners who encounter such conflict and wish to gain insight into all their available legal avenues could benefit from speaking with an attorney early on for guidance on how best to approach the situation. An attorney can examine the circumstances a client in Florida is facing and assist in developing a plan to protect his or her interests through the proper channels.