What are the consequences if one of the parties fails to fulfill his or her obligations as specified in the contract?

What are the consequences if one of the parties fails to fulfill his or her obligations as specified in the contract?

If one of the parties fails to fulfill his or her obligations as specified in the contract, it is considered a breach of contract. A contract breach may lead to an award of damages as reimbursement for the innocent party’s financial losses.

What is the remedy of the parties to a contract if the period has not been fixed?

If the obligation does not fix a period, but from its nature and the circumstances it can be inferred that a period was intended, the courts may fix the duration thereof. The courts shall also fix the duration of the period when it depends upon the will of the debtor.

Is a company liable for the actions of an independent contractor?

Employers are vicariously liable for the negligent acts or omissions committed by their employees in the course and scope of their employment. By contract, as a general rule, employers are not liable for the acts of independent contractors unless the work is “inherently dangerous activity.”

What happens when a party has failed to perform his contractual obligations?

Courts recognize and enforce both express and implied conditions. Discharge by Performance: A contract terminates when both parties perform the acts they have promised. If a party fails to either substantially or fully perform, the other party’s remaining obligations, if any, under the contract are discharged.

When can a party terminate a contract?

Typically, if one party breaches a specified provision of the contract, the other party may issue a notice to ‘show cause’ requiring the contractor to give reasons why the contract should not be terminated. If the party fails to show cause, or the reasons are not satisfactory, the contract can be terminated.

Can you terminate a contract without notice?

What if there’s no notice to terminate provision? It is well established law that contracts which do not state their duration or explain how to deal with their termination, can be terminated by one or both of the contractual parties giving reasonable notice.

When can an organization be liable for negligent acts of independent contractors?

However, there are three exceptions. First, an employer may be liable for an independent contractor’s misconduct if the employer was negligent in selecting or retaining the independent contractor. Second, an employer may be liable if the tasks assigned to an independent contractor are non-delegable.

Can an employer be vicariously liable for an independent contractor?

When considering vicarious liability if the tortfeasor is carrying on work of his own account, as in the case of an independent contractor, vicariously liability will not be established. This is likely to be welcome news for a variety of organisations that engage the services of independent contractors.

Who has the authority to debar a company?

(c) A contractor’s debarment, or proposed debarment, shall be effective throughout the executive branch of the Government, unless the agency head or a designee (except see 23.506(e)) states in writing the compelling reasons justifying continued business dealings between that agency and the contractor.

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