Understanding and resolving major contractual brea

Authors: Jeff S Johnson Ravipreet S Sohi

Publish Date: 2015/02/20

Volume: 44, Issue: 2, Pages: 185-205

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Abstract

In businesstobusiness relationships sellers are often faced with instances of contractual breaches by buyers In many cases relationship factors preclude legal enforcement of contract terms requiring sellers to explore alternate resolution options Literature on contractual breaches has primarily focused on enforcement options based on terms specified in the contract However little is known about how companies deal with contractual breaches by their customers when legal enforcement is not a viable option The authors use a grounded theory approach to investigate this important issue Based on indepth interviews with 40 supplier managers and executives in multiple industries the authors identify a types of outofcontract alternatives for resolving breaches b factors that lead to use of enforcement options outside the terms specified in the contract c contextual influences and d individual and firmlevel consequences of outsideofcontract enforcement

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