Manufacturer in Breach of a Supply Agreement? Notice to Remedy Breach

You signed a supply agreement with a manufacturer. The first few months ran smoothly. Then it slipped — short shipments, missed deadlines, quality variances, refusal to honour minimum order pricing, or unilateral changes to lead times. Your production schedule and customer commitments are built around the contract you signed, not the one they are now performing.

Long-form supply agreements often include a “remedy” clause requiring the innocent party to give written notice and a defined cure period before termination. Skipping that step is the most common reason businesses lose what should be a winnable contractual claim.

The legal context

A breach of a supply agreement gives rise to common-law and contractual remedies, but the way you exercise them is governed by the contract itself. Most supply agreements require that any party alleging breach give written notice specifying the breach and allow a defined period (commonly 14 to 30 days) for cure. Failure to follow the procedure can convert your termination into a wrongful repudiation — exposing you to the manufacturer’s damages claim instead of supporting yours.

Common pushbacks and why they fail

• “Industry-standard variance.” Industry custom does not override express contractual specifications you negotiated.
• “Input cost increases force the change.” A signed price commitment is enforceable; cost-pass-through is only available where the contract permits it.
• “Best efforts only.” Volume and lead-time obligations stated as commitments are commitments, not aspirations, regardless of best-efforts language elsewhere.
• “You accepted the prior shipments.” Acceptance of past breaches is not waiver of the contract going forward, particularly if you protested at the time.

The document and what it does

A Notice to Remedy Breach references the supply agreement by date and parties, identifies each breach with dates and quantities, demands the specific remedy required, sets the cure period stipulated by the contract, and reserves all rights including termination, damages and equitable relief. It is the formal trigger every well-drafted supply agreement requires.

What Claim Done delivers

• Reference to the specific clauses breached (we work from your agreement)
• Itemised list of breach events with dates, quantities and dollar impact
• Cure period drawn from the contract’s notice provisions
• Express reservation of termination, damages and injunctive relief
• Drafted and sent as a PDF, flat $49

What to expect after

A formal notice puts the breach and the cure period on record with the manufacturer. Cure rates are high. If the manufacturer does not cure, you have everything you need to terminate cleanly, source elsewhere, and pursue damages for the difference.