Breach of Contract Lawyers Romford, Upminster, Brentwood
Importance of Legal Assistance in Contract Disputes
What is a Breach of Contract?
Whether you are buying or selling goods or services, the majority of transactions that you enter into, in your personal life, 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. Even the purchase of a loaf of bread from your local supermarket results in you forming a contract.
Where one party to a contract fails to meet their obligations under the contract, this can result in a breach of contract. A breach in contract can mean a good deal of inconvenience and even financial losses for the parties left on the receiving end of an unfulfilled obligation.
What happens in a breach of contract dispute?
If you have been on the receiving end of a breached contract we can review the terms of the contract and assess the losses that you have suffered as a result of this breach. Alternatively, if you are being pursued for payment where you believe you are not liable, again we will be able to review the evidence and provide you with advice on your position.
Our experienced team can advise you on dealing with the dispute arising out of contractual issues and help you to reach a quick resolution.
Defining a Breach of Contract Under UK Law. Role of Contract Solicitors.
Breach of contract is defined as one of the parties to a contract doing an act which will break the terms of the agreement between the parties. If you are involved in a contract where the terms have been breached, a solicitor will be able to advise you of the terms of the contract, including both the express and implied terms. They will also be able to advise you of whether the act has resulted in a breach and what the implications of that breach are, as well as advising you of what remedies are available as a result of that breach.
Understanding Business Contract Law. Importance of Clear and Enforceable Contracts. Key Elements of Business Contracts
The law which applies to a contract will depend on whether the contract is business to business or consumer to business. In business-to-business contracts the parties are generally tied to the agreed terms of the contract and do not have the protection of the Consumer Rights Act.
It is important that the terms of any contract are clear and concise, this allows both parties to ensure that they understand their obligations under the contract. If there is ambiguity within the terms of an agreement it can lead to uncertainty of the terms and increase the risk of future disputes.
Types of Breaches and Legal Implications. Common Scenarios Leading to Breach of Contract Claims.
An anticipatory breach of contract occurs when one party informs the other that they will not be able to comply with the terms of the contract between the parties. An example of this would be where a party contracts to sell goods to one party and then decides to sell them to another party.
A material breach is a breach of the contract which is regarded as severe, this can also be known as fundamental breach. It is a breach that will go the root of the contract and will usually result in one party getting something quite different to what was originally agreed. An example of this type of breach would be a builder failing to attend to complete works, a failure to pay or not providing the agreed product or services.
A minor breach is a breach of the terms of the contract but one which will still allow the overall goal of the contract to be completed, this could be things such as late delivery.
The Claims Process for Breach of Contract. Legal Steps Involved in Pursuing a Claim.
The legal process of the breach of contract claim would usually start with the sending of the letter of claim to the otherside, specifying the terms of the breach and the remedies sought by the injured party.
If the other party engages once the letter of claim has been sent and period of negotiations/correspondence usually ensues. After which if no resolution has been achieved, the parties may then issue court proceedings to seek that the court determine the breach of the contract and the remedies available to the injured party.
Establishing the existence of a contract
For a contract to be valid, certain elements must exist: these are offer, acceptance, consideration and the intention to breach legal relations.
- Acceptance – the terms of the agreement by one party making an offer to the other and the other accepting the offer. Offer and acceptance can arise in many ways.
- Intention to Create Legal Relations – both parties to a contract must be able to show that there was an intention to create the contract between them.
- Consideration – this means that there must be a transfer of something of value in exchange for the service/goods being provided.
Legal Disputes Enquiry
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What is in the contract/terms of a contract. Process of Making a Breach of Contract Claim. Steps Involved in Initiating a Claim
Overview of Breach of Contract Law. Legal Framework and Regulations for Breach of Contract in the UK.
Expertise of Mullis & Peake Breach of Contract Solicitors. Navigating Contract Disputes.
The team at Mullis & Peake have expertise in acting for both Claimants and Defendants in respect to contractual disputes. Our experts will always try to resolves the dispute at the earliest opportunity with a view to reaching the clients desired outcome.
Remedies for Breach of Contract. Damages as Compensation for Breach. Other Remedies Available in Contract Disputes
The main remedies available for breach of contract claims are;
- Termination of the contract, this is known as repudiation.
- Claiming Damages
Damages are an award of money made to compensate a claimant who has suffered loss or damage as a result of a wrong for which the defendant is responsible. Contractual damages are compensatory in nature and aim to put the party into the position they would have been in had the contract been performed. Subject to the terms of the agreement other forms of damages may also be available.
Determining the types of remedies available will involve an analysis of the terms of the contract and the terms of the breach.
In addition to the above equitable remedies of specific performance/injunctions and the seeking of a declaration are also available.
Alternative Dispute Resolution for Contract Disputes:
It is not always in the parties best interest to pursue court proceedings as a means to resolve their dispute, ADR offers alternative means for the dispute to be resolved which can often be quicker and cheaper.
- Mediation – is a process whereby an independent party is appointed to act as a middle man between the parties to assist them with narrowing the issues and trying to find common ground to find a resolution.
- Arbitration – is the appointment of an arbitrator who is usually a specialist in the field of the dispute, to make a determination of the claim.
- Negotiation – this is a process of the parties between themselves or with their representative of trying to narrow the issues and/or agree terms of settlement.
Factors to Consider Before Suing for Breach of Contract Assessing the Merits of a Claim
- What are the terms of the contract
- What is the breach
- What remedies are available to you
- What is your desired outcome
- Is the Defendant a viable party – i.e. if you are successful could they afford to pay your damages
- Weigh up the costs v. risk benefit of bringing the claim
Legal Criteria for Bringing a Breach of Contract Claim. Evidence Required for a Successful Claim.
The first thing we need to prove are term of the agreement, if there is a written contract we will need to see this. If the contract was oral, we are likely to need to take a statement from the contract maker to prove the terms.
What was the breach and what evidence do you have of this, you may need an expert’s report to confirm that a product is defective. If the breach relates to late delivery, what evidence do you have of when the product was delivered.
If you are claiming that you have suffered a loss as a result of the breach, this will need to be evidenced. The evidence will vary dependent on the loss being claimed. Examples could be that you lost a contract with another party, so provide the correspondence/contract documents.
Implications of Contract Breach in Business
Impact on Business Operations and Relationships
There are not only financial repercussions of breach of contract claims, the breach could also result in bad publicity for your business which could lead to you losing customers or goodwill that you have. An injured party may also refuse to do business with you in the future, which could upset your business operations.
Legal Consequences of Breaching Business Contracts
The breach of a business contract is likely to result in a claim being made against your company. If you are found to have breached a contract you could be liable to pay damages to the injured party, the extent of those damages is likely to be defined by your contract but could include extensive losses.
Contact Mullis & Peake team to Resolve your Business Contract Disputes.
The team at Mullis & Peake have expertise in acting for both Claimants and Defendants in respect to contractual disputes. Our experts will always try to resolve the dispute at the earliest opportunity with a view to reaching the clients desired outcome.
Mullis & Peake have specialists in legal disputes ready to help you. Contact us online today or call us on 01708 784000.
Alternatively, request a call back to have one of our experts contact you at a time that suits.
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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
