What can be learned from the Hertz and Accenture dispute?
Hopefully, whenever two companies negotiate a contract, they will do so with good faith and proper attention to detail. However, despite best intentions, contract disputes may still arise.
Recently, Hertz and Accenture have entered a dispute with one another over a joint project. The car rental company (Hertz) is suing the consulting company (Accenture) over a breach of contract.
What is disputed?
Hertz sought out the services of the consulting company to help them develop and launch a website and e-commerce mobile application. According to the lawsuit, Accenture allegedly:
- Failed to deliver either the website or app.
- Delayed the go-live date twice
- Disregarded code requirements to allow the code to be used for Hertz global, Dollar and Thrifty brands
- Created code that had security vulnerabilities and defects.
Accenture has said that they will defend their position, and in April moved to have the $32 million lawsuit dismissed.
Key takeaways
Regardless of the final outcome of the litigation battle, this dispute provides a cautionary tale for business leaders in every field.
For one thing, this dispute highlights the importance of communication during a project—especially one as complicated as launching a new website and mobile application. When working with a supplier, drafting a well thought out contract may not be enough to prevent disputes. Throughout the project, the two parties must continue to communicate about key deliverables, timetables and methodologies.
When things don’t go as planned
No matter how careful you are, however, a contract dispute is always a possibility. When disputes do arise, obtaining the services of an experienced lawyer can make the difference in a case.
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