Non Performance of contract: What can be done?

What is non performance of contract?

Non-performance of a contract refers to a situation where one or both parties fail to fulfil their obligations under the terms of the agreement they entered into.

Under the law in England and Wales, non-performance of a contract can result in legal consequences, including breach of contract claims for damages or other remedies.

When one party fails to carry out their contractual obligations, the other party may have the right to terminate the agreement and seek damages for any losses they have suffered as a result of the breach. However, the ability to terminate and claim damages will depend on the terms of the contract, the nature of the breach, and the extent of the losses suffered.

In summary, non-performance of a contract can have serious legal consequences. Parties should be aware of their rights and obligations under the terms of the agreement they enter into. It is always advisable to seek legal advice if you are facing or contemplating a breach of contract situation.

Making a claim for non performance of a contract

If you believe that a party has committed a material breach of contract through non performance, you may be able to sue for damages. To make a claim, you will need to follow the appropriate legal procedures the, which may involve:

• Reviewing the contract terms: You should review the terms of the contract to determine whether the other party has failed to perform their obligations as required under the agreement.
• Notifying the other party: You should notify the other party of the breach of contract and give them an opportunity to cure the breach.
• Seeking legal advice: You should seek legal advice to determine the best course of action and whether you have a valid claim for non-performance of the contract.
• Initiating legal action: If the other party fails to cure the breach, you may need to initiate legal action to enforce your rights under the contract.

Proving your case: To succeed in your claim for non-performance of the contract, you will need to prove that the other party failed to perform their obligations as required under the contract and that you suffered losses as a result of their breach.

It is important to note that the legal procedures for making a claim for non-performance of a contract will vary depending on the type of contract and the jurisdiction in which it was entered into. Therefore, it is always advisable to seek legal advice before taking any legal action.

What are the remedies for non performance of a contract?

If a breach of contract occurs due to non performance, a number of remedies are available, including:

Damages: The most common remedy, designed to compensate the injured party for loss suffered as a result of the breach.

There are several types of damages, including compensatory damages (for actual losses and future losses), consequential damages (for indirect losses), and nominal damages (where there’s a breach but no substantial loss).

Specific Performance: An equitable remedy that requires the party in breach to perform their obligations under the contract. It is usually granted when damages are insufficient to compensate the injured party, often used in contracts involving unique goods or property.

Injunction: A court order directing an individual to do or stop doing a specific action. It can be preventive, stopping someone from doing something that would cause harm or breach of contract, or mandatory, requiring someone to fulfil a contractual obligation.

Rescission: This remedy cancels the contract, returning the parties to the position they were in before the contract was made. Rescission is available in cases of misrepresentation, mistake, duress, undue influence, or breach of condition.

Quantum Meruit: A remedy allowing one party to recover a reasonable sum for goods or services provided under a contract, where, for some reason, the contract cannot be fully performed. This is often applied where there’s been partial performance of the contract.

Restitution: Aimed at preventing unjust enrichment of the breaching party, restitution requires the party in breach to return or compensate for any benefit received under the contract.

How can Expert Commercial Law assist?

Our panel of contract solicitors can assist parties in taking legal action against large corporations and small businesses for non performance of contract.

Our panel firms provide guidance throughout the process, and can help protect their 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 non performance of contract case, 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.