If a vendor defaults on a contract, what should be done?

When a vendor defaults on a contract, the most appropriate step is to follow the procedures outlined in the contract for default resolution. Most contracts include specific terms that dictate what actions should be taken in the event of a default, such as notification of the default, a time period for remedying the situation, and potential penalties or actions that can be taken by the non-defaulting party. Adhering to these procedures is essential to ensure that you are complying with legal obligations and maintaining proper documentation for any decisions made regarding the default.

This approach also preserves the contractual relationship and allows for a structured resolution process, which can help avoid further complications or disputes. Following the outlined procedures ensures that all parties understand their rights and responsibilities, promoting a clearer path forward in resolving the issue.