Texas is known for its conducive business environment and favorable regulations. When setting up a business in the Lone Star state, chances are you’ll need vendors. Usually, these transactional relationships are founded on trust and professionalism, but that does not rule out the potential for dishonesty and fraud.
It can be disheartening when a vendor breaches the trust and professionalism upon which you’ve built your business relationship. If this happens, you deserve justice. So how do you hold a vendor accountable for their action?
Understanding vendor fraud
Vendor fraud can take multiple forms. They may exaggerate service costs. In other instances, they may deliver substandard products/services, tarnishing the reputation of your business. Double dipping, false representation, and receiving kickbacks are other instances of fraud that may be detrimental to your business. All these deceptive business practices can amount to vendor fraud.
Here are three elements you need to prove when suing your vendor.
- You and the vendor signed a valid contract. The contract included an offer that was accepted and considered by the vendor.
- You fulfilled the terms stated in the contract, whereas the vendor deliberately failed to honor their end of the deal.
- Your business suffered verifiable damages following the vendor’s actions.
The court will examine your contractual terms along with proof of breach. You may recover damages if your claim is successful.
Fraud is a serious offense with far-reaching implications for the victim. If you are a victim of vendor fraud, you need to explore your legal options. Find out how you can safeguard your business interests in the process.
