How can I proceed legally if a supplier commits breach of contract?
May 30, 2023 | 70,00 EUR | answered by Yvonne Schmidt
Dear Attorney,
My name is Jenny Zimmermann and I work as the managing director of a medium-sized wholesale company. Lately, we have been experiencing increased problems with one of our suppliers who repeatedly breaches our contract. Specifically, there are often delivery delays, poor quality of goods delivered, and even incorrect invoices. This situation not only leads to financial losses for our company but also to a significant damage to our reputation with our customers.
We have tried to discuss these issues with the supplier and find a solution on multiple occasions, but there have been no improvements. I am increasingly concerned about the future of our company and wonder how I can legally take action against the supplier to protect our rights and pursue compensation claims. What legal steps are available to me to compel the supplier to fulfill their contractual obligations, and how can we protect ourselves from similar incidents in the future?
I would be very grateful if you could provide me with your expertise in the field of commercial law and suggest possible solutions to help us overcome this challenging situation.
Sincerely,
Jenny Zimmermann
Dear Mrs. Zimmermann,
Thank you for your inquiry regarding the problems with your supplier. It is understandable that the repeated breaches of contract and the resulting financial losses as well as the damage to your company's reputation are very burdensome. In such cases, it is important to know the legal steps available to you to take action against the supplier and protect your rights.
First and foremost, it is advisable to carefully review the existing supply contract. This should include provisions regarding delivery times, quality standards, and liability issues. If the supplier is indeed in breach of contractual obligations, as a business owner, you have various legal options to address this.
One option would be to make a claim for damages out of court. You could set a deadline for the supplier to rectify the problems and demand compensation for the financial losses incurred. If the supplier continues to be unresponsive, you could engage a lawyer to initiate legal action for damages in court.
Furthermore, you may also consider terminating the supply contract and looking for a new supplier. In this case, it is important to consider the legal framework for contract termination and potentially make claims for damages.
To protect yourself from similar incidents in the future, I recommend including clear provisions regarding delivery times, quality standards, and liability in future supply contracts. Additionally, you could conduct regular quality checks and supplier evaluations to identify and address problems early on.
I hope this information is helpful to you and I am available to clarify any further questions or assist you in legal action against the supplier.
Sincerely,
Yvonne Schmidt
Attorney at Law specializing in Business Law
