When a Business Sues a Supplier

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When a Business Sues a Supplier

Most businesses have ongoing relationships with suppliers, vendors, or manufacturers of products so that they have the goods or services that they need to effectively and profitably operate their businesses. It is not unusual for a restaurant owner, for example, to buy a certain quantity of food from a supplier at an agreed-upon price. Likewise, a technology company may have contracts with vendors to supply it with high-tech components or equipment that are necessary to perform its services or manufacture its own products. These agreements between business and supplier are generally legally enforceable contracts, and when one party violates the terms and conditions of a contract, a lawsuit may result.

For instance, if a supplier fails to deliver a certain quantity of product within a specific timeframe, charges a higher than agreed price for certain supplies, or delivers an inferior substitute for the product it could not deliver, the supplier may have breached the contract by failing to satisfy its contractual responsibilities.

These disputes are typically governed by the Uniform Commercial Code (“UCC”). The UCC is a model code that in one form or another every state, including Arizona, has adopted.

While a business will often try to contact the supplier and negotiate the dispute informally, a lawsuit governed by the UCC may arise when negotiations fail or the supplier declines to respond to the business’s efforts at communication. Depending on the circumstances and the type of product supplied, the business might seek specific performance of the contract–requiring the supplier to comply with the terms of the contract–or seek the monetary damages suffered as a result of the supplier’s breach of contract. For example, if a business lost a major customer because it could not get the supplies that it needed to perform a service for the customer, the business could seek to recover its lost profits caused by the loss of that customer.

At Williams Mestaz, L.L.P., we focus our efforts on representing your business interests throughout the duration of your case. When you need help that only an experienced UCC and breach of contract attorney can offer you, contact Williams Mestaz, L.L.P., at (602) 256-9400.

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