If you see small signs that a contract might not be followed correctly, what is the best first step to take to stop bigger problems?

The best first step to take when observing small signs that a contract might not be followed correctly is to initiate proactive, informal communication with the other party to seek clarification and express concern. This means directly contacting the individual or team responsible for the specific contractual obligation on the other side of the agreement. The purpose of this initial communication is to understand the situation, confirm whether a potential issue exists, and provide an opportunity for immediate correction before the problem escalates. This communication should be objective, non-confrontational, and specifically reference the relevant contract terms or obligations that appear to be at risk. For instance, if a progress report is slightly delayed, a simple email asking for an updated timeline and reiterating the contract's reporting requirements would be an appropriate first step. A contract is a legally binding agreement between two or more parties outlining their mutual rights and obligations. Small signs refer to early indications of potential non-compliance, such as minor deviations from specifications, slight delays in reporting, or missed minor deadlines, which do not yet constitute a material breach but suggest a risk of one. Non-compliance means failing to adhere to the agreed-upon terms and conditions within the contract. This informal approach is crucial because it allows for the swift resolution of misunderstandings or minor issues without immediately resorting to formal dispute mechanisms. It helps distinguish between a simple oversight, a communication breakdown, or a legitimate difficulty that can be mutually addressed, versus an intentional failure or inability to perform. Simultaneously, it is essential to document these observed signs and the communication attempts. Documentation means keeping a clear, factual record of events, including dates, times, specific observations, and the content of communications, even informal ones. This record serves as an objective history, providing a basis for further action if the issue is not resolved, or demonstrating due diligence if a formal breach—a violation of any of the terms or conditions of a contract without legal excuse—later occurs. By engaging in clear, early communication and maintaining a factual record, potential minor issues can often be resolved, preserving the commercial relationship and preventing the problem from growing into a larger, more costly dispute.