If one party to the contract fails to fulfill its obligations, the other party can hold it liable in the following ways:
1.Negotiated settlement: First, the parties can try to resolve the dispute through negotiation. This can include discussing the cause of the problem, seeking a solution, and determining a reasonable deadline for fulfillment. It is important to retain all relevant written and oral evidence for later use during the negotiation process.
2.Send a reminder: If the negotiation fails, the injured party can send a reminder letter to the defaulting party demanding that it fulfill its contractual obligations. The reminder letter shall clearly state the facts, reasons and consequences of the breach of contract, and require the breaching party to perform the contract within a certain period of time.
3.Initiating a lawsuit or arbitration: If the demand letter still does not resolve the issue, the injured party has the option of submitting the dispute to a court or arbitration institution for adjudication. Before that, the injured party needs to collect all relevant evidence, including the contract text, performance records, evidence of breach of contract, etc., to support its claim.
In pursuing liability, the injured party may require the breaching party to bear the following liabilities:
1.Continued performance of the contract: If the breaching party is able to continue to perform the contract, the injured party may require it to perform in accordance with the contract.
2.Take remedial measures: If the breaching party is unable to continue to perform the contract, the injured party can require it to take other remedial measures, such as compensation for losses, payment of liquidated damages, etc.
3.Compensation for losses: If the breach of contract causes actual losses to the injured party, the injured party may claim compensation from the breaching party. It should be noted that the specific way of pursuing liability and assuming responsibility may vary depending on the type of contract, the terms of the contract, and the laws and regulations.
Therefore, before signing a contract, both parties should carefully understand the relevant laws and regulations and contract terms, and clearly stipulate their respective rights and obligations in the contract.