ExamplesA customer goes bankrupt and fails to make contractual payments.An employee discloses trade secrets in violation of a non-disclosure agreement. A buyer refuses delivery of items they ordered, as documented in a contract, when the economy suddenly downturns. A buyer refuses payment for delivered items until the price specified in a contract is renegotiated.An IT vendor delivers a project that is judged a failure but refuses to pay the penalties specified in your contract with them.
|Overview: Contract Risk|
The potential for a counterparty to fail to meet their contractual obligations.