Breach of Contract Lawyer: Contract Disputes
Updated: Oct 10
This guide will help you understand what a breach of contract is, the types of breach and what you can do if a contract is broken. It also explains how a breach of contract lawyer can help you solve the problem. A lawyer can assist with legal action, alternative dispute resolution or court proceedings.
We also look at key ideas such as the terms of the contract, liquidated damages and implied terms. Whether you face a breach of contract dispute or want to avoid one, this guide is for you.
1. What is a breach of contract?
A contract is an agreement between two or more parties. A breach of contract happens when one party fails to follow the agreement they made. Both parties must keep their promises. When one side does not, the other may have a breach of contract claim.
A breach can happen when someone:
Does not do the job at all (non-performance): for example, they do not deliver the product or service they promised.
Does it badly (defective performance): what they deliver is not as good as agreed. For example, a company installs faulty equipment instead of high-quality machinery.
Does it late (late performance): they miss a deadline that was important in the contract. For example, delivering wedding cakes the day after the wedding.
Breaks specific rules (violation of terms): they ignore special instructions in the contract, such as keeping information private.
2. Types of breach of contract
Knowing which type of breach happened helps you decide what to do next.
Minor breach
A small part of the contract is broken, but its main purpose is still met. For example, a supplier delivers your order a day late, but it does not cause serious problems for your business.
Material breach
A material breach is serious. It goes to the heart of the contract. For example, a company fails to deliver key materials, so you cannot finish your project on time.
Anticipatory breach
This happens when one side says, before the time for performance, that they will not perform. For example, a contractor tells you they will not finish your project on schedule because they are too busy.
Repudiatory (fundamental) breach
A repudiatory breach is very serious. English law often uses this term. It lets the innocent party end the contract and claim damages. For example, a delivery service fails to transport your goods at all, and you lose business because of it.
3. Remedies for breach of contract
If a contract has been breached, the law allows the injured party to seek remedies. These can fix the situation or compensate for the harm.
Compensatory damages
This is money paid to cover the losses caused by the breach. For example, if a company fails to deliver goods, you could claim the extra cost of buying them elsewhere. You must also take reasonable steps to limit your loss.
Liquidated damages
These are amounts written into the contract for specific breaches, such as late performance. For example, a contract might say a builder owes you £100 per day for delay. Courts will not enforce a clause that is a penalty. A clause is more likely to be valid if it protects a legitimate interest and is not out of all proportion to that interest.
Specific performance
This is when the court orders the breaching party to do what they promised. It is a discretionary remedy and is used mainly where money is not enough. For example, if someone refuses to hand over a unique item you bought, the court might order them to deliver it.
Rescission
This cancels the contract, so both sides return to their original positions. For example, if someone lied to you to make you sign, you might be able to cancel the contract.
Quantum meruit
This allows someone to be paid a fair value for work they have done, even if the contract was not completed.
4. What should you do if a breach happens?
If you think a breach has occurred, follow these steps:
Review the contract: look at the contractual terms to see what was agreed and what was breached.
Talk to the other party: try to fix the issue by discussing it directly.
Consult a lawyer: a breach of contract lawyer can explain your options and help you decide what to do next.
Consider alternative dispute resolution (ADR): mediation or arbitration can solve disputes without court.
Send a letter before claim: the court expects parties to try to settle first. See the pre-action conduct practice direction.
File a legal claim: if all else fails, you might need to take the matter to court.
Time limits apply. A claim for breach of contract normally has to be brought within six years under the Limitation Act 1980. Do not leave it late.
5. Liquidated damages vs penalties
Liquidated damages make breaches easier to handle. The parties agree in advance how much one side will owe if they break certain terms. The clause will be enforced if it protects a legitimate interest and is not extravagant. If the sum is out of all proportion, it may be a penalty, which courts will not enforce.
For example, suppose a delivery company agrees to pay £500 for each day of delay, but any real loss from delay would be tiny. A court might treat the clause as a penalty and refuse to enforce it.
6. How Canko Law Firm can help
At Canko Law Firm, our breach of contract solicitors handle breach of contract claims. Whether you are bringing or defending a claim, we review the contract terms. We also look at any implied terms.
We specialise in contract law and offer expert advice on commercial contracts, so that they are clear, fair and legally binding. If a breach occurs, we help clients understand their options, including the right to claim damages for loss.
We focus on cost-effective solutions such as alternative dispute resolution. We are ready to take legal action and handle court proceedings when needed. Our goal is to protect your rights and secure the best possible outcome.
You may also like our guides on how contract dispute solicitors can help resolve issues, what in breach of agreement means and how much a commercial contract solicitor charges.
