Vendors provide critical services for companies. They import unique products or refine raw materials that organizations use to manufacture products. Finding reliable and cost-effective vendors can be one of the biggest challenges of running a successful company.
Unfortunately, a vendor that has previously provided quality materials or goods may not indefinitely continue to do so. Organizations may find that there are serious quality issues with recent deliveries of goods or raw materials. Entire production batches may fail quality control testing due to substandard supplies. Leaders at an organization may need to take immediate action when a drop in quality complicates a vendor arrangement.
Quality issues can constitute a breach of contract
Frequently, organizations that rely on vendors to provide raw materials or certain goods establish specific standards for the items that they need. Particularly when the arrangement is a recurring one, there may be certain material purity or performance standards integrated into the agreement.
Establishing that recent deliveries did not conform to contractual standards may allow businesses to hold vendors accountable for a sudden and disappointing slump in quality. In some cases, vendors may agree to a return of the substandard materials or goods delivered. The vendor may provide replacements if possible or a refund if replacing the goods or materials is not an option.
If the vendor refuses to take responsibility, then it may be necessary to take legal action. The courts can help a client hold a vendor accountable for non-conforming goods or materials. In some cases, the courts may help enforce the contract, including penalty clauses for late deliveries. Companies may also be able to seek damages in cases where they have to recall or destroy products because of a vendor issue. Other times, pursuing the recession of a contract might be the best solution possible.
Continuing to do business with an unreliable vendor can potentially lead to future losses and operational disruptions. By eliminating future business dealings with a vendor who has proven to be unreliable or unethical, organizations can ensure that they have a consistent source of necessary goods and materials.
Reviewing contract terms and the details regarding substandard deliveries with a skilled legal team can help business leaders determine the best options given the circumstances. When vendors do not uphold their agreements with organizations, initiating business litigation to enforce the contract or cancel the business agreement can both be viable solutions.