Contract Law
8 min read
15/01/2025
Legal Brain Team
Breach of Contract
When one party fails to fulfill their contractual obligations
Table of Contents
What is it?
A breach of contract occurs when one party fails to perform any duty or obligation specified in a contract without a legitimate legal excuse.
Key Points
- 1Minor breach vs material breach
- 2Anticipatory breach when party indicates they won't perform
- 3Remedies include damages, specific performance, or rescission
- 4Duty to mitigate losses
- 5Damages must be foreseeable (Hadley v Baxendale rule)
Typical Process
1
Identify the specific contractual obligation that was breached
2
Determine if the breach is material or minor
3
Calculate losses and attempt to mitigate damages
4
Send formal notice to the breaching party
5
Consider alternative dispute resolution
6
File court proceedings if necessary
Common Examples
- •Supplier failing to deliver goods on agreed date
- •Service provider not completing work to specified standard
- •Buyer refusing to pay for delivered goods
- •Employee leaving without giving required notice
- •Landlord failing to make essential repairs
Related Laws & Regulations
Sale of Goods Act 1979 (Section 2)
Supply of Goods and Services Act 1982 (Section 13)
Contract (Rights of Third Parties) Act 1999
Unfair Contract Terms Act 1977 (Section 3)
When to Seek Professional Help
- ⚠Contract involves significant financial amounts
- ⚠Complex contractual terms need interpretation
- ⚠Dispute involves commercial relationships
- ⚠Other party denies breach occurred
- ⚠Time limits for legal action are approaching
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