Brerch of contract

As the agreement outlines if one party fails to comply by that then it is said to be breach of contract. In the stated case the sudden cancellation of the contract could be considered to be a breach, especially if they do not provide Raj with adequate notice or compensation.

The following could be taken as a legal recourse:

As the first step a through review of the agreed contract should be done, cluses related to termination or notice period or compensation should be looked through. These are crucial for determining the validity of the startup action and his rights. As a  further step he should gather all the evidences related to communication with the startup that would include all the mails, messages any written assurances regarding the duration of the contract and the steady streaming of the project. These will play a vital role in proving the breach and the promise made by the startup.  

The following is the potential legal actions that could be taken:

He can send in an fomal demand letter to the startup before taking a legal action which could outline the breach, financial losses incurred and a request for a compensation. This could result in a settlement without going to court. If at all the contract includes arbitration or  mediation clause he may pursue these alternative dispute methods, before filling any lawsuit as these process can be quicker and  cheaper.

Cost of hired assistance or any upgraded equipment’s, losses that were foreseeable result of the breach for eg. Lost of business opportunity, or in some cases the court may ask to fulfil the contractual obligation as well. These are few of the things that the court may award as a compensation to Raj.              

To prove the breach the following needs to be proven;

The signed agreement between the startup and Raj with shows the existences of a valid contract. The losses incurred by Raj due to breach. As outlined in the contract the stratup failed to fulfil the obligation.