When a business in New York enters into a contract with another party, the business seeks to secure either goods or services in exchange for providing the other entity with compensation. This generalized statement covers the foundational elements of creating a contract, from an offer by one party that is accepted by the other in exchange for some form of consideration. While creating a contractual relationship may seem simple, working out the problems that can arise when one party fails in their contractual responsibilities can be anything but simple.
For example, consider a business that agrees to pay another party $100,000 for ten new machines that the buying business needs for its enterprise. Imagine that the parties agree that the buyer would pay half of the fee upfront and the other half upon delivery of the machines. Imagine further that delivery was scheduled to occur on December 1.
If by close of business the buying party has not received the machines, then it is possible that the other party may be in breach of the contract between them. The injured party, that being the buying entity, may seek to compel performance of the contract by demanding that other deliver the machines as soon as possible. The buying party may be able to seek compensation for any losses they sustain as they wait on the late machines.
In some cases, the buying party may choose to terminate the contract and seek the return of their deposit plus their damages. If they are able to secure machines from a third party this option may be viable. Whether a business chooses to compel performance or cancel a contract will greatly depend on its needs and the facts applicable to their case. As such, readers who are questioning how to address contractual breaches plaguing their businesses are encouraged to discuss their concerns with business law attorneys.