Can we break a contract regarding a software agreement if we have had constant problems with the software?

UPDATED: Dec 15, 2013

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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


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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