What can a party do if the other fails to meet their contractual obligations?

Claiming damages is a recognized legal remedy in contract law when one party fails to meet their contractual obligations, also known as a breach of contract. This remedy is designed to compensate the non-breaching party for losses incurred as a result of the other party’s failure to perform as agreed. Damages can cover actual losses suffered, lost profits, and other expenses directly arising from the breach.

This approach is grounded in the principle of putting the injured party in the position they would have been in had the contract been fulfilled. It addresses financial harm and encourages parties to adhere to their contractual commitments.

While renegotiating the contract could be a practical solution, it is not a formal legal remedy and depends on both parties' willingness to agree. Similarly, terminating all contracts with the breaching party might not be appropriate or justified, especially if only one contract was breached. Filing a complaint with international authorities is also not a viable option unless the nature of the breach involves international law or treaties, which does not apply in most domestic contract disputes. Thus, claiming damages appropriately addresses the violation of the contract and aims to provide a remedy for losses sustained.