Recent Answers to Transportation Service Agreement Law Questions
Can a transportation service agreement be terminated if the service provider fails to meet the agreed-upon service levels?
Transportation
Transportation Service Agreement
California
I entered into a transportation service agreement with a company to provide transportation services for my business. The agreement outlined specific service levels, including timeliness and reliability. However, the company has consistently failed to meet these service levels, causing significant disruptions to my operations. I would like to know if I have the right to terminate the agreement due to their failure to meet the agreed-upon service levels.
Dolan W.
This appears to be a breach of contract. A breach of contract simply means that one party was obligated to perform and they have either not performed or have said that they will not perform. (Restatement (Second) of Contracts.) This applies regardless of whether the agreement was written or done orally. Typically, the aggrieved party is entitled to be returned to the same position they were in before the breach. This means that if they were no timely or reliable, and they have consistently failed to meet the service levels, and it has caused disruptions, then there is a breach. The quicker, informal option is to send a demand for performance. Performance is the payment of some money or engaging in some required action. Use this template I drafted- https://www.contractscounsel.com/t/document-form-checkout/119 Best of luck to you!
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