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Should you release a vendor for breach of contract?

On Behalf of | Oct 6, 2022 | Business & Commercial Law |

Today, businesses rely on their vendors and suppliers to keep the doors open and continue serving their customers. When establishing any business relationship, a written contract is recommended. 

Even with a written contract, though, there are situations where a vendor may not fulfill their role. In this situation, you may wonder if releasing the vendor and finding a new one is the best option. 

Dealing with vendor contract breaches

Before jumping the gun and releasing or firing a vendor, determine the problem and the underlying issue that caused it. With some investigation, you may discover the breach wasn’t entirely the vendor’s fault and may lie with your ordering process, payment issues, or something you can easily resolve to maintain the relationship with the vendor. 

Even if you discover the vendor is 100% at-fault for the breach, there may be resolution options that will preserve the relationship. One is to determine and propose solutions. For example, you may request the vendor provides you with a discount on shipments for six months to compensate for the losses due to their breach. This is just an example. You can determine a solution that will be suitable for your situation. 

Taking legal action

If there is no agreeable resolution you can establish, the next step may be legal action. Filing a lawsuit is the most common way to address contract disputes like this. You can also go through mediation, which may help you save on court costs. 

Protecting your business

The relationship you have with your vendors is important. It fuels your business growth and success. If there is a breach of contract, knowing your legal options to resolve it can be helpful.