When companies do business, this transaction is memorialized in writing. An agreement has certain terms, and these terms must be followed by the parties to the agreement. Failure to do so could be considered a breach of contract. Such a situation does not only harm the agreement, essentially invalidating or voiding it, it can cause damages, making it important to understand what steps could be take to recover these losses suffered.
According to recent reports, Playboy Enterprises, which is the parent company of Playboy Magazine, is suing a cryptocurrency company for fraud and breach of contract. Playboy and Global Blockchain Technologies announced their partnership earlier this year, revealing that they were developing an online payment wallet with cryptocurrency support.
The agreement stated that Playboy was to trial a new cryptocurrency called Vice Industry Token on Playboy.TV before expanding it to other entertainment media platforms owned by the company. It was also suggested that customers should be able to earn and pay vice tokens to view content.
The lawsuit filed by Playboy claims that it entered into an agreement to implement blockchain technology and GBT was expected to integrate third-party cryptocurrency VIT tokens on the sites owned by Playboy. Playboy now seeks unspecified compensatory and punitive damages, asserting the GBT has not made good on the deal, which included a $4 million payment. GBT believes that it has a strong defense against this action
A company must keep the best interests of the company in mind when making business decisions. This means fully understanding the business relationships entered into, determining when these relationships have been harmed or damaged. When another party to a business agreement does not uphold their side of the agreement, this not only hurts this relationship, but it can create damages that harm the business. Thus, it is important to take legal steps to protect your business, seeking restitution for any harms suffered.