Cover all
the angles
Read more articles in: Blog
23 October 2026
Contracts are entered into with the expectation that both parties will fulfil their obligations. However, a dispute can arise when one party fails to hold up their end of the deal.
Whether it is a supplier failing to deliver goods or a contractor providing defective work, a breach of contract can have a substantial impact on finances and operations.
Understanding your options is important to helping businesses and individuals decide on the most appropriate course of action.
If you have tried to resolve things informally and it has not been successful, the first, and most cost-effective step would be to pursue Alternative Dispute Resolution (ADR) remedies.
Here, a neutral third party will discuss the issues between two or more parties and help them to come to an agreement without having to go to court.
This option is much less expensive than attending court and allows the matter to be dealt with quickly and confidentially.
It is quickly becoming an expectation by the court that ADR is undertaken before proceedings commence.
Should ADR come to no avail, the next step is to put concerns in writing in something that is known as a ‘Letter Before Action’.
The Letter Before Action will set out the nature of the breach, which part of the contract it breaches, the losses that have been suffered, what action the other party must take, a deadline for the response and a notice that legal proceedings will follow if the matter cannot be resolved.
It is often the case that a well-drafted Letter Before Action can encourage settlement before the matter is progressed to court.
Before you send a Letter Before Action, you must ensure that you are following contractual procedures which may include a notice period or escalation procedures.
A failure to comply with these provisions could affect your legal position, meaning it is important to check the contract carefully before acting.
In some circumstances, you may wish to bring the contract to an end rather than continue working with the other party.
However, terminating a contract is not always straightforward and doing so without a legal right to terminate could itself amount to a breach of contract.
Whether you can terminate the agreement will depend on the terms of the contract, the nature of the breach and the circumstances surrounding it.
Some contracts contain express termination clauses that set out when and how either party can bring the agreement to an end. In other cases, a sufficiently serious breach may give the innocent party the right to terminate the contract.
Before taking this step, it is important to consider the potential financial and legal consequences. You should also check whether the contract requires you to give notice or allow the other party an opportunity to put things right before termination.
Taking legal advice before terminating the agreement can help you understand your rights and avoid creating further legal complications.
If the dispute cannot be resolved through negotiation or ADR, court proceedings may be an option. The appropriate remedy will depend on the nature of the breach, the terms of the contract and the loss suffered.
One of the most common remedies is a claim for damages. This is intended to compensate the innocent party for losses caused by the breach, subject to the applicable legal rules.
The aim is generally to put the innocent party in the financial position they would have been in had the contract been performed.
Depending on the circumstances, other remedies may be available. For example, a court may order specific performance, requiring a party to carry out their contractual obligations, although this remedy is discretionary and is not available in every case.
An injunction may also be appropriate in certain circumstances to prevent a party from doing something in breach of their obligations.
Before commencing proceedings, it is important to weigh up the potential value of the claim against the time, cost and uncertainty involved. You should also consider any applicable time limits, as waiting too long could affect your ability to bring a claim.
A breach of contract can be disruptive to your business. Understanding your options early can help you to make informed decisions on the best way forward.
Our team can support you when seeking remedies for a contractual dispute. Whether you are looking to negotiate a settlement through ADR, bring a contract to an end or pursue legal remedy, we can provide guidance tailored to your circumstances.
Get in touch with our team to learn more about your options when a contract is breached.
