Question

Company A agrees to ship to Company B 15 tons of wheat a month for five years beginning on July 1 and on the 1st of every month thereafter. On November 2, Company B has not received the 15 tons of wheat for the month. What are Company B’s rights and remedies?

Answer 1

First of all the Company B should check the agreement/contract copy between Company A and Company B, There should be some clause mentioned for breach of contract i.e if Company A fails to deliver its promise.

Following may be rights and remedies available to Company B under the contract itself:-

Penalty Clause : there may be a clause for penalty for non delivery on time , or non delivery because of whatever reason may be company b impose a penalty

Discount:- For an Delayed Delivery,

Compensation for non delivery

Cancellation of Contract

If there is no clause in the contract for penalty etc.then Company B has a choice to Revoke the contract or cancel it if they wish again they can black list the company for future contracts. They should also analyse the reason for non delivery if the reason is genuine and company A also gives an assurance that this thing will not happen again then they can give them a chance to serve the contract with some penalty against this non delivery plus for future they can add clauses in agreement.