The company should review the contract, document the failure, determine whether the breach is material, give any required notice and consider replacement supply, damages, termination or other contractual remedies.
Key questions
- Was there a fixed delivery deadline?
- Was time essential?
- Was there partial delivery?
- Is late delivery still useful?
- Is there a cure period?
- Did the buyer perform its obligations?
- Does force majeure apply?
- What loss resulted?
Nepal's Civil Code contains rules on reciprocal obligations, delayed performance, breach, termination, damages and specific performance.