Rental car company faces issues after not paying contract for work on its app

Nashville, TN – When companies attempt to work together, it is best if there is a formal agreement in case there are questions about the duties of either party in the future. Sometimes, a project will start to break down as the situation progresses, and the companies may find that they need assistance from a court to enforce the terms of the written agreement.

The large rental car company Hertz is being sued in federal court for failing to pay a company that did work on their mobile app [1].

Hertz owes millions to app developer after breaching agreement

The focus of the lawsuit is essentially that Hertz never paid the company Versett as described in a contract and consulting agreement. Versett argues in the complaint that the total value of the work it performed was approximately $2 million. The work was done not only for the Hertz app, but several other companies owned under the parent brand.

The contract in question was from 2021, and it was for both design and engineering. It outlined a process where Versett would evaluate the apps, recommend changes to improve functionality and user experience, and then help Hertz make these changes on various platforms. Disputes between the companies began once Versett had trouble maintaining regular contact with Hertz, and again when they chose solutions that could be completed more quickly over the more thorough and functional changes that Versett had previously recommended. At some time after these disputes started, Hertz attempted to terminate the contract and their obligations to Versett.

Breach of contract lawsuits in business law

One of the most common reasons that businesses end up in court is when one or both parties fail to complete the terms of a deal as described. In most situations, the party that breached the original agreement will have to pay the costs or damages that are directly related to the breach such as lost revenue and profits. However, it is also important for a court to evaluate the situation and determine that a valid agreement existed before it can be enforced. It is possible that two companies were working together on a project without a real contact that could be legally binding if problems arise. The fact that there was no valid agreement is a defense to breach of contract lawsuits.

Business lawyers are available in Nashville

The Law Offices of George R. Fusner is a firm that works with business clients in the area of Nashville, Tennessee. Those who need to get advice from a business attorney can contact the firm to learn more.

USAttorneys.com is a site that helps people find lawyers in their area. Anyone who needs a referral to a licensed attorney can call 800-672-3103 to get started.

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027

615-251-0005

gfusnerlaw.com

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