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U.S. Senate candidate faces legal action for breach of contract

U.S. Senate candidate Elizabeth Emken is currently facing litigation from a conservative mailing company. The company has filed the lawsuit against the Republican politician on the grounds of breach of contract and fraud.

According to California-based Landslide Communications, Emken owes the mailing house $65,000 as part of an outstanding debt that she has failed to pay. The lawsuit alleges that Emken repaid a personal loan made to her campaign instead of paying the debt to the mailing house. Landslide Communications asserts that the company mailed more than 5.5 million letters to support Emken's campaign, but Landslide received only $45,000 of the $110,000 the campaign promised.

Because Landslide Communications and Emken had a binding contract, she is required by law to pay the full amount of the debt. However, if Emken is facing financial challenges, she may be unable to make that payment. Nonetheless, because she was able to repay the personal loan to the campaign, Landslide Communications believes that she had the funds available to pay the company the full amount her campaign had promised.

Business contracts are only as strong as their provisions. Because the lawsuit was just filed, it is impossible to predict whether the contract's language will be sufficient to force Emken to pay her obligation to the mailing company.

To protect themselves from similar situations, businesses should always be sure that their contracts are ironclad. When contract disputes do arise, business owners would do well to prepare themselves with the help of an attorney with experience in contract disputes.

Source: Los Angeles Times, "GOP Senate candidate sued by conservative mailing house," Anthony York, Oct. 2, 2012

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