Not every contract that is signed will yield the perfect result. In fact, in some cases, one side of the deal will not fulfill their obligations as outlined in the contract. When this happens, it can cause serious damage, financial or otherwise, to the other company involved in the deal. Contract disputes like this happen more often than you would think, so it is important for companies to legally protect and prepare themselves.
When a contract dispute occurs, the affected party may file a lawsuit against the party that violated the terms of the contract or failed to fulfill their obligations as outlined in the contract. What is vital in these cases is the determination of the breach: in other words, was the breach material or immaterial? If the breach is deemed immaterial, then the affected party would be unlikely to receive damages in the case.
A material breach of contract, though, would entitle the victimized party to some form of damages or justice. Depending on the circumstances of the case, the party affected by the breach of contract could be awarded financial damages as a result of the breach; or “specific performance” could be awarded, in which case the breaching company would be legally compelled to fulfill their end of the bargain; or “cancellation and restitution” could be used, where the non-breaching party cancels the contract and sues for restitution.
If your company has been victimized by another in a breach of contract, you need to discuss your case with an attorney as soon as possible.