What happens if a vendor breaches a contract with your business?

On Behalf of | Aug 9, 2021 | Uncategorized |

Whether you run a construction company or operate a personal chef service that provides meals to clients, you are dependent on your vendors for your business to succeed. When someone doesn’t deliver supplies you purchased or paid for, when they provide you with the wrong items or when they try to increase their prices in violation of a contract, your company may suffer. 

Executing a contract should lock in specific terms and make them enforceable in a court of law. When a vendor doesn’t deliver as promised, you may need to take action to protect your business interests. 

Is the other business willing to correct the matter?

Sometimes, supply chain issues or personal illnesses affect the ability of a company to fulfill contractual obligations. In extreme situations, they may overlook their obligation to communicate with your business about their hardship. 

Communicating with a vendor about a breach of contract before taking more aggressive steps can sometimes resolve the issue. If they don’t respond (or do so inappropriately), then the California civil courts can help you.

What happens in a breach-of-contract lawsuit?

When one company or individual fails to fulfill their contractual obligations to another person or company, litigation may be the only way to resolve the matter. You will need to submit the contract itself to the courts, as well as information about when and how the breach occurred. Even communications between you and the other party showing that they refused to fulfill their obligations can help you build your case. 

After a judge determines that the contract is valid and the other party breached it, they can then rule in your favor. They could compel the other party to follow through with their obligations or even award you damages, among other options. 

Using business litigation to respond to a breach of contract issue can help your company avoid losses because of someone else’s failure. While it’s not an easy undertaking, it’s sometimes necessary when business deals sour. 

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