Can we break a contract regarding a software agreement if we have had constant problems with the software?
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Can we break a contract regarding a software agreement if we have had constant problems with the software?
We signed a 3 year contract after being showed how the medical office software worked. Now after a matter of months we are fed up with the software not working as it did in our demonstration. It is timing out, losing information causing our office constant frustration and loss of productivity. We changed to this software because our billing company was changing. Another HIPPA problem is that we can pull up other practices patients on our computers. We have called the company numerous times over issues we were having, only they have not been fixed. We have had enough and started using our old software again.
Asked on December 15, 2013 under Business Law, New Mexico
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
When there is a material (major) breach of the contract such as in your situation with the software malfunctioning, you can sue immediately for breach of contract without tendering performance (performing your contractual obligations).
Your damages (the amount of compensation you are seeking in your lawsuit) would be the contract price or lost income. You can also recover expenses incurred resulting from the breach of contract. Lost productivity may be too speculative to prove as damages. Damages must be specific and certain.
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