Contract Dispute Lawyers Essex – Romford, Brentwood, Upminster
What are Contract Disputes?
Whether you are buying or selling goods or services, the majority of transactions that you enter into, in your business and personal lives, involve the making of a contract. The contract does not have to be in writing, a contract can exist through conduct or by a verbal agreement.
Contractual disputes can arise at various stages of a transaction, a breach of contract by your supplier could result in you breaching terms with another party. Our experienced team can advise you on dealing with the dispute arising out of contractual issues and help you to reach a quick resolution.
What are the stages of a contract dispute?
- Identify the terms of the contract.
- Consider if there is a breach.
- Consider the remedies available and what the client would like to achieve.
- Initiate contact with the other side, how this is done will depend on what you are trying to achieve.
- If the dispute cannot be resolved then court proceedings may be required.
Elements of a Contract
Breach of Contract
A breach of contract generally occurs where a party fails to comply with the obligations imposed upon them by the contract.
The Importance of Hiring Contract Dispute Lawyers
The remedies available for a breach of contract vary depending on the breach which has occurred, and you could waive your right to claim a certain remedy if you do not take proper legal advice.
Understanding Contract Terms and Conditions
Contracts do not have to be in writing, it is easier to define the terms if they are, but an oral contract with suffice. Therefore, we need to establish what the terms were agreed between the parties. If there are written terms, have these been varied at all. If both parties operate their own terms and condition, whose terms & conditions are applicable, these are all factors which your lawyer will need to consider when you are considering pursuing a claim.
Legal Obligations and Rights in Contract Disputes
The terms of your contract essentially set down the obligations of the parties, further terms can also be implied by law, this is especially the case in consumer contracts. The law also prevents contracts from excluding liability for certain claims, such as personal injury.
Contract Breaches and Legal Remedies
Where there has been a breach of contract by one party, we will need to consider what options are open to the affected party. These options are generally referred to as remedies.
In contract law there are a number of remedies available, these include:
- Damages
- Recission
- Injunctions
- Repudiation
Legal Disputes Enquiry
Fill out the form and a member of our team will get in touch to discuss how we can help.
Role of Contract Dispute Lawyers
Contract Review and Drafting
We will initially review the contract to assess the terms of the contract and the rights and obligation granted under those terms.
Dispute Resolution Strategies
How you wish to address the contract dispute will depend on your particular circumstances, factors which will need to be considered are
- Do you wish to retain this relationship with the other party?
- Is it a case of won’t pay or can’t pay?
- What have they breached?
- Can the breach be rectified?
- Do you want the breach to be rectified?
Litigation and Court Representation
If a resolution cannot be reached amicable then one of the option will be to issue court proceedings to seek the court to determine your dispute. The terms of these court proceedings will vary, depending on what is being sought as a remedy and what opposition that otherside has raised to any pre-action correspondence.
Mullis and Peake Expertise of Contract Disputes Lawyers & Services Provided:
Debt Recovery
Debt recovery can be sensitive and stressful for all involved. You want the most cost-effective and timely way of resolving outstanding debts. We can help you do that with honest, trustworthy advice. If you shouldn’t proceed, if there is another action you could take, or if another professional is better placed to help you, we will let you know.
Cost
The recoverability of your costs from the otherside will depend on the sum being claimed and whether the claim is successful.
Timescale
The time it will take to recover the debt can vary widely from case to case. In some cases, payment will be received following the service of a Letter of Claim in which case the matter could be resolved in 4-8 weeks. However, if the claim is defended and proceeds to a full trial, it could take up to a year, or even longer, for the matter to reach a conclusion. There are often delays to court proceedings which are outside of the parties’ control and are due to court backlogs.
Common Causes of Contract Disputes
Failure to Perform Contractual Obligations
Where one party fails to perform the obligation imposed upon them.
Ambiguous Contract Terms
Where the terms of the contract are not clear, parties may have a different interpretation of the terms and therefore their obligations under the contract. It is therefore important to ensure that the contract is clear from the outset.
Changes in Circumstances
This can often be a cause for a breach, if one parties financial circumstances change they may no longer be able to afford to pay the sum required by the contract or the needs of the business may change and therefore the good provided under the contract are no longer required.
Disagreements over Contract Interpretation
If the terms of the contract are not clear form the outset, this can lead to dispute later on. If Parties cannot come to an agreement over the interpretation of a contract, a court application for determination may become necessary.
Steps in Resolving a Contract Dispute:
- Identify the terms of the contract
- Identify the breach
- Identify the remedy sought
- Initiate the Claim process
The Role of Evidence in Contract Litigation
- Any documentation to confirm the terms of the contract will be vital, this could be an agreement, emails, messages or witness statement from those involved in the initial contract process.
- If the terms of the contract have been varied, i.e. payment is made on the 10th of the month instead of 1st, then documentation such a bank statement to show this change.
- Where a breach has occurred, this will need to be proved, i.e. if delivery was due for a certain date and it was late, then provide the delivery notes.
- Evidence of the losses you have suffered as a result of the breach will also need to be collated.
Alternative Dispute Resolution for Contractual Disputes
As with most type of disputes, contract claims do not have to end up in a court process. Alternative Dispute Resolution may be an option. The contract will need to be checked as the contract may specify, how disputes are to be addressed. If the contract does not specify a means, the parties can agree between them to use an alternative route such as mediation.
Consequences of Unresolved Contract Disputes
Financial Losses
Where a contract is breached, generally one party will suffer a financial loss, the loss could be extensive as the breach may have an effect on other contracts down the line.
Damaged Business Relationships
A breach will often result in a breakdown of the business relationship of the parties directly involved.
Reputational Damage
If it becomes known that one party has breached a contract, then they will suffer damage to their reputation.
Legal Implications
Depending on how the breach of contract claim is resolved, a party could end up with a Court Order against them which may effect how they operate their business in the future.
Frequently asked questions
Where one party agrees to provide a service or goods to another for payment for a sum of money and fails to perform that service or provide those goods.
- Do not enter into contracts which you cannot fulfil
- Understand the terms of the contract at the outset
- Seek to vary terms with the other side, if an issue arises.
Ambiguous contract terms are often a primary cause of legal disputes. If there is a clause which you do not understand, seek to agree its meaning with the other side before an issue arises.
Mitigate your losses, do not ignore the issues – try to address them as quickly as possible. Communication is key, often speaking with the other side as early as possible will prevent the case spiralling.
The other side will need to be notified of the dispute and advised where the breach has occurred, generally this can be done by way of a letter of claim. If the dispute cannot be resolved amicably then considering will need to be given to issuing of court proceedings to seek a remedy.
Mullis & Peake have solicitors in contracts and debt recovery ready to help you. Contact us online today or call us on 01708 784000.
Alternatively, request a call back to have one of our team contact you at a time that suits.
Our latest insights
Holly is a Member and Head of Mullis and Peake’s Dispute Resolution Department
Martyn is our Chairman and the firms' Compliance Officer for Legal Practice
