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Contract disputes could cost Office Depot in Florida

Contract disputes are common whenever people or companies enter into business agreements. This is true whether the parties are individuals, small businesses, or national players.

When a successful business decides that it wants to relocate to a new city, it often asks local and state governments for tax breaks and other benefits. If the officials feel that the company will help the local economy, the parties sign a contract. For instance, the city, state or municipality might promise to provide the company with lower taxes and the company may agree to stay in the city and hire a certain number of employees. Even though both sides of a contract have good intentions, as time goes by, circumstances can change..

Office Depot, a company headquartered in Boca Raton, may soon be dealing with a business contract dispute. Office Depot has said that it aims to become a giant office supply store by merging with OfficeMax. There is a lot of competition in the office supply industry, and the two companies hope that the merger will allow them to become a superstore.

Florida and local municipalities provided Office Depot with millions of dollars in incentives when Office Depot located its headquarters in Boca Raton. However, the impending merger raises the question of whether the company's headquarters will be moved to another state. If this occurs, Florida government officials have said that they will demand that several million dollars of taxpayer money be returned.

Corporate contract disputes can become costly for a business and involve months of litigation and negotiation. If a business is facing the possibility of a contract dispute, it might be a good idea to seek legal counsel for assistance.

When you are doing the call to action it needs to be subtle. Therefore you always want to say that a business (or person) may want to consult or might find an attorney's experience helpful in such matters. You don't want to say that a person should immediately contact an attorney. It should always be presented as an option.

Source: South Florida Sun Sentinel, "Office Depot would owe state millions if it moves from Boca Raton," Marcia Heroux Pounds, March 1, 2013

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