When Fashion and Law Intersect: Navigating Breaches of Contract

Picture this. You’ve carefully selected the professionals who will service you and your brand. Your lawyer is an expert in the fashion industry. Your accountant is on your safe list as she’s been your accountant for 10+ years, specializing in fashion companies. Your new manufacturing system is being set up by a former employee of your main competitor. Your key employees are high-profile industry professionals. Everything seems great, right?

That’s when an issue crops up. Maybe that former employee alerting competitors to new collections before they’re released for public consumption. Or that “trusted” accountant stealing your latest quarterly check. Or that attorney trademarking your intellectual property for herself instead of you. An issue that can only be solved through the legal process.

But can you afford to hire a lawyer to resolve the situation? Let’s face it, the fashion industry doesn’t have the kind of cash reserves that can keep the bank balance buzzing – particularly when a lawsuit hits. But you also need legal protection. The chances of winning a legal battle aren’t much good when you’re representing yourself. There’s no way to know whether you’ll win or lose, but the repercussions are huge either way.

And you want to avoid as many contract disputes as possible. Because there are a multitude of issues that can arise – with your lawyer, manager, accountant, designers, fabric suppliers, and other services you may hire.

So, if you’re in the fashion industry, how can you ensure your contracts are as tight as the clothing you make? A few suggestions to help your fashion business run smoothly:

A contract is a written document outlining the terms of the partnership between your brand and any individuals or organizations you may hire. That includes everyone from accountants, designers, distributors, marketers, attorneys, and other consultants.

But contract disputes are common when you’re operating in a fast-paced world like the fashion one. It means that without a watertight contract, you could be at risk of financial and reputational damage for an extended period.

Here are some of the common causes of contract disputes and how you can prevent them.

1. Choosing the Wrong Lawyer: Your attorney should have vast experience in the fashion industry, ideally having worked with similar brands as yours. Be smart, and choose wisely.
2. How to Make a Contract Water-Tight: A trusting relationship between employer and employee should result in a clear understanding of the scope of the work to be performed, the hours, deadlines, penalties, and so forth. Don’t assume anything. Put everything in writing.
3. The Contract Provisions: All the above-mentioned issues can be avoided by having the right contract provisions in place right from the start. That includes being transparent from the beginning about how contracts work. Include how disputes should be resolved, the procedures to follow, and the penalties if guidelines are not followed.
4. The Legal Repercussions. Things can become complicated with a contract dispute. Even if you win, it’ll negatively impact your brand. But it’s not about just winning the case. It’s also about stopping it from happening in the first place.

The Best Solution to Your Fashion Business Contract Disputes. Fashion businesses can’t always afford the best solution to their legal issues. And often, it can be more cost-effective to close down the business than it is to continue fighting a lawsuit. Which means that you need to prevent it from happening in the first place. A detailed, water-tight contract that includes a secure agreement on how disputes will be resolved will minimize your financial and legal woes. That means you need the right lawyer on your side, someone who has experience with all facets of the fashion industry and can give you advice that will ensure you’re legally protected. Stop calling your friend who went to school for a semester in Adelaide because he thinks he knows something about fashion law. And forget asking your accountant or manager to handle the situation. The stakes are too high to take a chance with your image. This is when you need to bite the bullet and pay for a lawyer who knows fashion and knows legal contracts. That’s when you’ll find the stress just melts away.

How to Avoid a Fashion Business lawyer breach of contract

1. Ask the Right Questions: We don’t know what else your lawyer does, but I’m sure you didn’t hire him/her just for fashion matters. What else do you need legal advice on? Will you need guidance for personal matters, a divorce, say, or to draft a will to secure the future for your heirs? Make sure your lawyer is duly experienced in everything that you need.
2. Ask for References: Not online reviews. Ask for a list of actual clients that your lawyer has worked for, and drop those clients a line. Check out their experience with this lawyer and whether they’d recommend hiring them.
3. Find a Responsive Lawyer: You need to know that you can contact your lawyer and get the answers you’re looking for. And that he/she will follow up quickly.
4. Ensure Your Lawyer Is Understanding: You probably didn’t hire your lawyer because he/she’s an understanding person. But this is one time you want to know that your lawyer on fine terms with you. You want to have a lawyer who understands your expectations and needs from the first meeting.

But most importantly, you want to ensure your contract with your lawyer is watertight. For that, your lawyer needs to know the ins-and-outs of the fashion industry. He/she needs to have experience of the business; how it runs, what’s at stake, and how to protect it. Only then can you be sure he/she will protect your business when push comes to shove.