Non-performance contracts

Your company concluded a contract for the development of, for example, an electronic patient file. It is a platform on which your customers, suppliers and other partners share data or the progress of the digital transformation process. However, costs are increasing significantly, it takes longer than expected and it is uncertain whether all the functionalities that are agreed upon are included. What should you do?

First Lawyers is here to assist. During an intake session, the legal position of your company is determined, and advice is given on next steps. If desired, First Lawyers can represent you and fulfill these recommended steps on your behalf.

Claim for performance of contracts

Whether or not you still have confidence that everything will work out and the agreement will be complied with, the first step is always a notice of default. It specifies what the agreed expected performances are, and a reasonable period to still complete these performances. This could lead to a meeting, re-establishing current agreements, or rearranging agreements. However, if it is difficult for the negligent party to deliver the agreed performances, or if they remain unrealistically optimistic and continue to believe that everything will be okay, it could be better to wait until the ‘reasonable period’ has expired. Subsequently, the situation could be reassessed and a decision made to demand the expected performances or dissolve the agreement.

In both situations, First Lawyers will consider the different available legal options available and provide advice on each of these options. In the case that it is decided to dissolve the agreement after the notice of default, usually the company wants to claim compensation for losses faced. In many cases, this process is complex and involves additional proceedings before the agreement can be ended by dissolution and compensation can be claimed. First Lawyers is here to assist.

Dissolution of contracts

An agreement can be dissolved when there is sufficient legal basis and when legal conditions are met. A motivated letter can be sent to the other party or the court can be asked to dissolve the agreement. The latter is more prudent if it is not entirely clear in advance that the other party did not fulfil the agreement. However, First Lawyers has noticed that companies do not always have enough time to ask the court to dissolve the agreement. Often, legal procedures have a lead time of about a year, from subpoena to judgement. First Lawyers can advise and assist in this process.

Claims for compensation

A part of the allocated budget has already been spent because the supplier has sent invoices that are (partially) paid. Now, it seems that the agreed performances will not be delivered, but the money is needed to conclude a similar agreement with another supplier. In this case, financial (replacement) compensation can be claimed. Also, it could be that your company suffered other losses because other systems were kept up and running for longer, extra staff needed to be appointed or invoices could not be declared to your insurance. First Lawyers can assist in claiming compensation.

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