When someone doesn’t deliver on a contract on time

On Behalf of | Apr 16, 2020 | Business Law |

A contract may specify far more than just what goods or services are to be provided or how much will be paid for them. Breaking any of the stipulations in the contract can be grounds for a breach of contract claim as long as the breach is not immaterial.

One key factor can be the time at which the deliveries are to be made.

For instance, perhaps you have a parts supplier for your company. They agree to your terms, which include Monday morning deliveries. Timing is important because if that shipment is late, everything else gets held back. Your workers cannot assemble products without parts. Products cannot ship out if they’re not assembled. Plus, you have so many orders that you can’t just get caught up later. If the supplier doesn’t arrive until Monday evening, you lose a whole day of productivity, and it pushes those future orders back.

An immaterial breach is one that does not really harm your company. In this case, it’s clearly material because you’re spending wages on workers who have nothing to do, you may be losing sales and you may even lose customers if they’re not happy about the delay. That delay feels like it is largely out of your hands, but they don’t know that. They may never buy from you again as a result. It tarnishes your brand and your reputation, which you have spent years working on.

This is just one example, but it shows how even small details, when not handled properly, can lead to a breach of contract. You need to know all the options you have.