HOW TO CLAIM FOR BREACH OF CONTRACT.

19 September 2018

How to claim for breach of contract

Most organisations will draw up legal contracts with a variety of parties including employees and third-parties before providing or receiving a service from the other contracted parties.

It is important to understand that a contract is not legally binding unless it includes the following:

  • An official agreement which consists of making an offer and receiving acceptance of the specific terms within the contract.
  • The intention to commence legal relations in the form of a lawful agreement.
  • Consideration of any promise given in return for receiving a benefit promised by the other party. I.e. Money exchanged for goods or services.

If one or more parties fails to comply with the terms of the legal contract, then this Is known as a breach of contract.

There are different variations of contract breaches including: minor, material, fundamental and anticipatory.

  • A minor breach of contract could involve a builder completing a job with their own tools rather than using the specified materials stated in the contract.
  • A material breach of contract could involve a builder being contracted to complete a specific job, and instead completes any entirely different job not stated in the contract.
  • A fundamental breach of contract could occur if the builders’ employer fails to give the required notice period for termination of their employee.
  • An anticipatory breach of contract could occur if the company who is contracted to make payments to the builder refuses to pay for their services without a substantial reason.

It is important to understand that no assumptions should be made when considering a claim for breach of contract. The only way to confirm a breach of contract is an outright refusal to commit to the contract terms.

In order to claim for a breach of contract you must demonstrate the following:

  • Clear evidence that the contract exists. Ideally, this would be in written form, although there can be an implied contract, i.e. one created due to trade and custom.
  • Solid evidence of the actual breach, making sure you establish the specific terms of the contract that initiated the breach.
  • The impact of the breach of contract, along with clear evidence of how it has directly caused you loss.

If the court decides that you have clearly demonstrated the above terms, then they may decide to award you monetary damages for the breach of contract. These damages are awarded in order to place the affected party back in the financial position they were in before entering in to the contract.

On some occasions, the Court can make an injunction order, which involves the party in breach of the contract remedying the breach and ceasing from causing further damage in the future.

The Court can also decide to make a specific performance order, which involves the party in breach to comply with a specific contract term, which they failed to comply with previously.

 

Here at Three Graces Legal we can assist you with a breach of contract claim.

Please contact us 0151 659 1070 at to see how may be of assistance.

 

 

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