I saw this kind of behavior a lot those few years. A major university did the same.
In the case of the university, they weren't fulfilling on their end by providing us with raw video materials in time to process them. Then our software had bugs processing the files in time. We had to do it all within a few weeks. Who's fault is that, our bugs or their personnel issues.
Usually lawyers then come in to fight it out. And they will comb over those contracts to find one item that was not fulfilled and use that to the hilt.
And, lots of times, you sign a contract and THEN you figure out how to fulfill upon it. If you haven't done that, you've never really run a business, don't fool yourself.