Breach of Contract Claims: Resolve your Dispute

Breach of contract claims can be a complex area of commercial law. Expert Commercial Law have a panel of experienced contract solicitors to assist claimants in pursuing a claim.

What is a breach of contract?

Contracts are essential in the delivery of goods and services. A breach of contract occurs when one party fails to fulfil their obligations under a legally binding agreement. This can include failing to deliver goods or services as promised, failing to pay for goods or services received, or violating other terms or conditions of the agreement.

A breach of contract can occur in any type of contract, whether it’s a written document agreement or an oral one. If one party breaches the contract, the other party may be entitled to seek legal remedies such as claiming damages, specific performance, or cancellation of the contract.

It’s important to note that not all contract breaches are equal, and the severity of the breach may impact the available legal remedies.

For example, a minor breach may only result in monetary damages, while a major breach may allow the non-breaching party to terminate the contract and seek additional legal remedies.

There are different types of breach, each with varying degrees of severity. Here are some of the most common types:

• Material breach: A material breach of contract occurs when one party fails to perform a significant or essential aspect of the contract. A material breach may excuse the non-breaching party from further performance and allow them to seek damages.
• Minor breach: A minor material breach  occurs when one party fails to perform a non-essential aspect within the terms of the contract. The non-breaching party may be entitled to damages, but they are still required to perform their obligations under the contract.
• Anticipatory breach: An anticipatory breach of contract occurs when one party informs the other party in advance that they will not be able to perform their obligations under the contract. The non-breaching party may immediately seek legal remedies.
• Fundamental breach: This occurs when a breach is so severe that it goes to the heart of the contract, and the non-breaching party is excused from further performance.
• Actual breach: This occurs when one party fails to perform their obligations under the contract at the time they were due.
• Partial breach: This occurs when one party only partially performs their obligations under the contract. The non-breaching party may seek damages for the incomplete work.

It’s important to note that the severity of the breach may impact the available legal remedies. If you believe that a breach of contract has occurred, you should consult with an attorney to understand your options.

Criteria for making breach of contract claims

In order to claim for breach of contract, the following criteria must generally be met:

• Valid and enforceable contract: There must be a valid and enforceable contract between the parties to the agreement. This means that the contract must be legally binding and contain the necessary elements such as offer, acceptance, consideration, and mutual agreement.
• Breach of contract: One party must break the terms of the agreement, either by not performing as promised, performing improperly, or failing to perform at all.
• Notice: The non-breaching party must have notified the breaching party of the breach and given them an opportunity to cure the breach.
• Damages: The non-breaching party must have suffered damages as a result of the breach, such as lost profits or costs incurred to fix the breach.
• Causation: The breach must have caused the damages suffered by the non-breaching party. It must be shown that the damages would not have occurred but for the breach.

It’s important to note that the criteria for making a breach of contract claim may vary depending on the jurisdiction and the specific terms of the contract. If you believe that a breach of contract has occurred, you should consult with an attorney to understand your options and the specific requirements in your situation.

Remedies for breach of contract claims

The most common remedies for breach of contract claims include:

Damages

Damages for breach of contract are the most common remedy. They are monetary compensation awarded to the injured party to cover losses caused by the breach. There are several types of damages:

• Compensatory damages: Intended to compensate the innocent party for the loss incurred as a result of the breach. This aims to put the party in the position they would have been in if the contract had been performed as agreed.
• Consequential damages (Special Damages): Compensate for additional losses that are not directly caused by the breach but are a consequence of the breach, provided they were foreseeable at the time the contract was made.
• Nominal damages: Awarded when a breach occurred, but the non-breaching party suffered no quantifiable financial loss. These are symbolic and usually a small amount of money.
• Liquidated damages: Specific damages that were predetermined and outlined in the contract itself, to be paid in the event of a breach. These must be a reasonable estimate of actual damages that might result from a breach.
• Punitive damages: Rare in breach of contract cases, intended to punish the breaching party for egregious behaviour and deter future breaches.

Specific Performance

An equitable remedy that requires the breaching party to perform their contractual obligations as agreed. This remedy is typically used when monetary damages are insufficient to compensate the injured party, often in cases involving unique items or real estate.

Rescission

Rescission is the cancellation of the contract, with both parties released from their contractual obligations. The contract is treated as if it never existed, and any benefit received must be returned to the other party. Rescission may be appropriate in cases of fraud, mistake, misrepresentation, or where the contract is fundamentally breached.

Reformation

Reformation is the modification of a contract to reflect what the parties actually intended. This remedy is used in cases of mutual mistake or when one party was misled by the other. It adjusts the terms of the contract to ensure fairness and adherence to the parties’ original intentions.

Injunction

An injunction is a court order that either prohibits a party from doing something (prohibitory injunction) or requires a party to do something (mandatory injunction). It might be used in breach of contract cases to prevent a party from acting in a way that would cause further harm to the other party.

Quantum Meruit

Quantum meruit is not a remedy for breach of contract per se, but it is a principle that allows a party to recover the value of work performed when there is no enforceable contract. It is based on the idea that one should not be unjustly enriched at the expense of another.

How can a solicitor from our panel assist with breach of contract claims?

If you have suffered a loss due to a breach of a legally binding contract, please get in touch with pur team today. We will pass your case onto one of our panel firms who will consider your case based on the merits of your claim.

A solicitor from our panel can help you with breach of contract claims in several ways:

• Advising on the contract: A solicitor can review the contract and advise on the rights and obligations of the parties, and the strengths and weaknesses of bringing a breach of contract claim.
• Negotiations: A solicitor can help negotiate a settlement with the other party, which can avoid the need for costly legal proceedings.
• Representation in court: If negotiations are unsuccessful, a solicitor can represent the client in court, present the case, call and cross-examine witnesses, and make legal arguments on their client’s behalf.
• Drafting legal documents: A solicitor can help draft legal documents such as letters of claim, statements of case, and witness statements, which are required for court proceedings.
• Advising on the process and the outcome: A solicitor can advise on the court process, the possible outcome and the costs involved.
• Advising on alternative dispute resolution methods: A solicitor can advise on alternative dispute resolution methods such as mediation or arbitration, which may be more efficient and cost-effective than court proceedings.

It’s worth noting that a solicitor with expertise in contract law can provide guidance throughout the process, and can help protect the client’s rights and interests. They can also help evaluate the strength of the case and advise on the best course of action. If you need help with a commercial contract, speak to us today. Unfortunately, we are unable to assist with employment law contracts.

Our solicitors also help with commercial claims, such as partnership disputes, fraud claims and CCJ removal.

Please note, we are not a firm of solicitors; however, we maintain a panel of trusted and regulated legal experts. If you contact us in relation to a commercial law case, we will pass your case onto a panel firm in return for a fee from our panel firms. We will never charge you for passing on your case to a panel firm.