If you breach the terms of trade, the other party can take action against you. They will normally claim compensation for the loss they have suffered as a result. This loss might simply be their wasted costs. It might also include, for example, the profit they have lost or the costs they will now have to put things right.
Depending on the circumstances, and any agreement you reach, you may still have liabilities under the contract. For example, if you have paid compensation for supplying an unsatisfactory product, you may still be liable for future claims under a warranty or guarantee.
