When businesses work together, they usually define their relationships through contracts. Contract breaches can occur in several ways. For instance, one party may fail to perform the duties outlined in the contract altogether, violating the agreement. On the other hand, duties may be performed, but payment might not be rendered, breaching the provisions in the contract.
One important consideration is that a missed deadline—often referred to as a “failure to perform on time”—can also constitute a contract breach. The significance of this breach depends on the circumstances and the extent to which the deadline is missed. Let’s explore some examples.
Supply issues
For example, imagine a craft brewery in Florida that has contracts with suppliers for raw materials such as hops, malt, bottles, cans and more. To operate effectively, the brewery relies on these supplies being delivered on time. If a supplier misses a deadline, the brewery may be unable to produce its products or fulfill orders.
The financial harm caused depends on the specific case and the length of the delay. If supplies are supposed to arrive on a Friday but don’t show up until Monday, the brewery may experience reduced productivity, but the breach could be considered minor.
Conversely, if the deadline is entirely missed and the brewery has to source new supplies, production might halt for weeks. This could lead to significant financial losses and missed sales opportunities. Furthermore, if the brewery has its own agreements with retail outlets—such as grocery stores or convenience stores—it might fail to fulfill those obligations due to the supplier’s breach.
Legal complexities
Situations like these can become legally complex. Those involved need to carefully evaluate their legal options.