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Compliance to follow after a breach of contract


10-Jul-2023 (In Corporate Law)
we have signed contract with one datacenter for services, but in testing phase we found that bandwidth given to us for email services is very less, now to increase the bandwidth Data Center is asking for money. Since already we are paying them amount which is more then our other datacenter vendors. So we want to exit the contract. Now can somebody help me what are the compliances that my firm owes as per contract one month notice is needed, but we are start ups we cannt pay for one month without fulfilling of requirement. So we are feeling that we are forged by Datacenter, since we clearly mentioned our requirement then why they had offered us bandwidth of 3Mbps, when they have experience, they know that this bandwidth will not be useful to us. When now we want to exit the contract they say that they will take legal action etc. But I exited, we have no pending liabilities and dues, we have paid all our dues for services used. But they want us to pay for one month as we are exiting.
Answers (5)

Answer #1
687 votes
The terms of the contract will need to be seen in order to give holistic advice on this issue. If, as per the contract, a higher bandwidth was required to be given and a lower one has instead been provided by the datacenter vendor, you can argue that the vendor had committed a breach and therefore you terminated the agreement.
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Answer #2
809 votes
Dear sir/ma'am,

I will need the details/copy of the contract before advising you on the implication of the breach of the contract. Apart from a case on damages, they can also file a case for specific performance. Before explaining you the law on damages i would like to read if the contract stipulates for any damages in case any party terminates it prematurely. You nay kindly contact me for any further detaisl
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Answer #3
893 votes
You can file a criminal complaint for breach of trust, contract, fraud and cheating played upon you by the and then you can also ask ofor damages from them, dont be scared there might be some clause in the contract also for their lack, if you have a well- versed counsel , then he will handle everything.
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Answer #4
515 votes
It wouldn’t be responsible on my part to tender legal-advise, of any kind, without studying the underlying agreement that you/ your firm/company has with this Data Center. Please ask Lawrato to put you in touch with me, to take matters forward. I look forward to being of help.
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Answer #5
946 votes
If the data centre has not performed as per the contract between yourselves you can exit from the contract. However the manner to exit and the consequences thereof depend on the terms of the contract. Kindly share the contract for better advice.
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