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Outsourcing?

By admin | January 12, 2008

Vader_Gator asked:

If i am a customer of a outsourcing company who handles my IT department. What happens if i fail to meet the terms in the outsourcing contract. I know fines are 1 is there any others
Thanks

Question posted courtesy of: Judy
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    • Topics: outsourcing |

    One Response to “Outsourcing?”

    1. Steve B Says:
      January 13th, 2008 at 1:30 am

      Penalty clauses are typically built into the Contract
      (to find out what happens, read the Contract).

      Generically ..
      If one party fails to meet it’s contractual obligations, and there is no specific provision for this in the Contract Terms, then the other party can seek compensation direct and/or sue for damages in a Court of Law.

      Th other party might also decide that the breach is so significant as to render the Contract null & void and may then contract with a 3rd party (to deliver the originally contracted goods and/or services) and subsequently recover any additional costs from the first party.