Negotiating a contract with another business should mean that you can safely do business together. You can perform work knowing you already agreed on a specific quote or make a payment anticipating the delivery of certain materials.
Unfortunately, there are some businesses that do not uphold their side of the contracts. Perhaps you paid money to another business for services or goods, and they did not fulfill their obligations. Maybe you performed services for a business or delivered goods, and they have failed to pay you.
How can I recover contractual debts?
Your contract isn’t worth anything if you don’t act to enforce the agreement. When you have a written agreement with another business, they have to follow through on their obligations or risk enforcement actions in court.
If you paid for goods or services and they did not uphold their end of the agreement, you may need to file a legal claim for breach of contract. This may lead to a judge ordering specific performance. The other party will have to fulfill their contractual obligations to your business or risk violating a court order. If it’s too late for specific performance to help, you may be due compensation for whatever losses you’ve incurred.
On the other hand, if you performed services or delivered goods but did not receive payments, a judge could order the other party to pay you in full. In fact, the courts could even award you damages if the breach of contract by the other party had some kind of significant financial or operational impact on your business.
Knowing how to handle a business collection matter can minimize the effect another company contract can have on your success. We help businesses resolve their disputes with vendors, suppliers, distributors and other companies. Contact us for a consultation.