When you sign a contract with another business owner, you are expected to uphold your end of the deal (providing payment) and they are expected to uphold theirs (providing goods or services). This contract can be breached in numerous ways, all of which could financially harm your company.
It does not always mean that they simply fail to provide the end product or service that was promised. While that is clearly a breach, you also want to consider other issues, such as those noted below.
The goods or services are late
Providing said goods and services on time is a critical part of a contractual obligation. Even being a day late may cost your company money and make you miss deadlines further on down the line. All of the other provisions could be met perfectly, but you could still claim there was a breach if a deadline was not upheld.
The goods or services are of a lower quality
In a lot of cases, the quality of a part or a product is crucial. It’s not just that you get what you ordered on time. You need to get products that are themselves in terrific condition, that are up to your specifications and that are not defective. If the other company promises one caliber of part and then swaps it out for something of a lower caliber — perhaps to save money — then you have still suffered a breach.
What can you do?
When there is a dispute over a contract breach, you must know all of the legal options you have. As frustrating as this situation is, there are steps you can take to make it right.