Breaches of contract. Expensive, time-consuming, and something most businesses can do without. They are one of the most common reasons businesses turn to litigation funding. And because contract law permeates over so much of the day to day workings of a business, breaches are inevitable – what matters is the consequences of the breach to your business reputation and bottom line.
Differences in the way we use and interpret language means there is always a risk of contractual terms being misinterpreted. Also, parties’ needs and expectations can change over time, resulting in contractual breaches occurring.
This guide is designed to provide you with a basic guide to the legal aspects of breach of contract and the actions you can take if you find one of your commercial contracts has been dishonoured.
For a contract to be effective, four key elements must be present:
Contrary to popular belief, verbal contracts can be legally binding, but the terms are harder to prove.
A breach of contract is failure by one party to perform any term of a contract, written or oral, without a legitimate legal excuse.
A breach can include:
The main remedies available for breach of contract are:
Breaches of contract are generally settled outside of court through negotiations or alternative dispute resolution methods such as adjudication (for construction contract disputes), mediation or arbitration.
Litigation is expensive, time-consuming and stressful which is why few parties to a breach of contract allow a dispute to reach this stage unresolved.
To find a solicitor who specialises in commercial contract disputes, search through Solicitors Guru today.