Winning Strategies, Proven Success

Why is a missed deadline a contract breach? 

On Behalf of | Oct 3, 2024 | Uncategorized

There are numerous different ways that a contract can be breached. There are both minor and major breaches, and some can have a much larger financial impact than others. But it is important to remember that every contract breach is significant, even if it is just due to a miscommunication or something of this nature.

For example, missing a deadline could mean that the contract was broken, even if it is eventually fulfilled. This can still have a financial impact on one or both of the parties. Let’s take a look at how this could occur.

One example in practical terms

Imagine that you are the owner of a company that produces consumer products. But you do not manufacture the parts and materials that you use. Your factory just does the assembly.

If your parts supplier has a contract stating they will deliver the materials that you need on a certain day, and they miss that deadline, your production efforts grind to a halt. You may have employees who are on the clock, but who cannot work because they do not have the necessary parts. You may have orders that you have already promised to fulfill, and you are now going to fail in that obligation because your entire schedule has been set back by the broken contract.

This can have a major impact on your sales numbers, your company’s revenue and even your reputation with clients, customers or wholesalers. As such, it is very important to understand your legal options after a contract breach. These cases are often contentious, so you must know what steps to take and how to protect your business moving forward.