Quality Should Be Your First Consideration

Is it time to terminate the contract with your supplier?

On Behalf of | May 5, 2023 | Contract Law

Suppliers are crucial to business operations. Thus, it helps to have a contract with one to ensure they supply you with everything you need to run. Unfortunately, you may need to terminate this contract in certain situations and look for another supplier.

Here are instances that may push you to take this kind of step:

Failures to meet the contract terms

The contract you and your supplier signed detects the terms of the partnership. They should supply you with the needed goods on time, and you should pay them according to the agreed terms. Provided each party keeps their end of the bargain, your relationship can last for a long time. However, if your supplier fails to meet the contract terms, it may be time to end the relationship. 

A supplier may fail to act contrary to the contract terms in different ways, including: 

  • Providing substandard or defective goods
  • Delivering goods late
  • Supplying the wrong items
  • Supply items with incorrect specifications
  • Not delivering at all

Of course, the unexpected may happen. They may have a supply chain issue, for example, that will also impact you. Reoccurring issues, however, should not be a problem. If your supplier fails to meet the agreed terms and there are constant excuses, it may be time to look in a different direction. This is particularly true if you find that your supplier’s a poor communicator and you either don’t get sufficient responses to your inquiries and questions or cannot reach them at all.

Terminating a contract with a supplier should be the last resort after employing the conflict resolution methods in your contract. It will be best to get legal help when doing this to avoid costly lawsuits for wrongful termination.    


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