Autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero eros et dolore feugait

Breach of Contract

Are you in a situation where you have been in breach of a contract or have you been a victim of someone else breaching a contract. When entering into a contract, it goes without saying that you should be well aware of what you are getting yourself into.

What is a contract and when is it formed?

A contract is a written or spoken agreement between the parties involved and is intended to be legally binding.

In order for a contract to be formed, there are five elements which coincide; Offer, Acceptance, Consideration, Intention to create legal relations and Certainty of terms. Once these elements have been fulfilled a contract is formed and it becomes binding.

Breach of contract

When a contract is formed it creates certain obligations which are to be fulfilled by the parties who entered into the contract. A breach of contract is a material non-compliance with the terms of a legally binding contract, this can include when a party fails to perform on time, does not perform in accordance with the agreed terms of the contract or fails to perform at all.

When a contract becomes legally binding it can be enforced. All parties to a contract expect to benefit from the agreed contract. If one party is not receiving the benefit of the agreed contract then they have a legal right to recover compensation for their loss.

Where there is a right, there is a remedy

When a contract has been breached, the other party becomes entitled to a remedy. The main remedies for a breach of contract are; damages, specific performance, rescission and reformation.

The most common remedy for a breach is damages, this is when the party who has breached the terms of the contract becomes liable. There are different types of damages including compensatory damages, punitive damages, nominal damages, liquidated damages.

A specific performance remedy is when the court makes an order for each person or business to follow through with the initial terms of the contract.

The rescission of a contract occurs when a contract is cancelled and all money involved is returned and the matter is dropped as if it never happened.

When a contract is reformed it is re-written to suit the actual intention of the parties involved.

The above remedies would often be included in the contract itself, therefore, before considering issuing court proceedings it would practical to review the contract carefully either yourself or alternatively it might be a good idea to have a solicitor reviewing the same for you.

Getting out of a contract without a dispute

A contract can be broken without ending up in court. One way to do this is by way of consent, when all parties agree to break the contract there is no breach. However, if this was to happen, it is always best to have the consent put in writing so that it becomes irrevocable.

Another instance where a contract can be legally broken is if the breach is not material and there are no resulting consequences.

Disputes in relation to breach of contract are the most common disputes in courts in this day and age, this is because any business or individual can become a victim of a breach of contract. Therefore knowing your rights, options and legal remedies can make it a little easier when you are in a dispute.

If you need help and advice regarding breach of contract disputes, please do not hesitate to contact us on 0113 350 4030 or at hello@scesolicitors.co.uk.

If you have enjoyed this article and would like to be kept updated on HR and employment issues please subscribe to our monthly newsletter.

SCE Solicitors is a boutique employment law and litigation practice based in Leeds which advises clients nationwide. Please note that the information in this blog is to provide information of general interest in a summary manner and should not be construed as individual legal advice. Readers should consult with SCE Solicitors or other professional counsel before acting on the information contained here.

Sam Mukhtar
Latest posts by Sam Mukhtar (see all)
Sam Mukhtar

Sam Mukhtar is a paralegal at SCE Solicitors, she has over 5 years of legal experience. Prior to starting her role at SCE Solicitors, she worked in a regional firm in Greater Manchester dealing with civil matters before moving to Leeds and joining the SCE team.

%d bloggers like this: