Global technology mogul International Business Machines (IBM) has filed a civil lawsuit against another company. The business law case alleges that the defendant in question failed to produce quality microchips for IBM as agreed to in a contract. IBM had sold a manufacturing plant to the company, and the contract between them stated that the company agreed to produce the microchips as part of the sale. Texas business owners facing similar issues may want to follow this case.
IBM wants its money back for a breach of contract
IBM had sold its manufacturing plant to GlobalFoundries for $1.5 billion. In the recently filed legal claim, IBM asked the court to order a return of those funds, plus damages the company has suffered because of GlobalFoundries’ supposed non-compliance to the terms of the contract. IBM has also accused the defendant of both not producing the products it promised and of misusing funds.
GlobalFoundries fires back regarding business law litigation
A spokesperson for GlobalFoundries issued a public statement, stating that IBM’s allegations are without merit. She also said that the company is confident that the court will rule in its favor. IBM, on the other hand, has accused GlobalFoundries of being deliberately deceitful and making false promises under contract.
Once a contract is signed, all parties must adhere to its terms
Texas business law includes many regulations about contracts, one of which is that signed contracts are enforceable by law. It will be up to the court in the IBM versus GlobalFoundries case to determine if, indeed, the defendant has committed a breach of contract as the plaintiff has alleged. Those facing similar legal problems in business may want to consult with an experienced business law attorney before heading to court.