What is a breach of contract?
A breach of contract occurs when one party to a contract fails to perform one or more of his contractual obligations and can take a number of forms. Some of the more common examples:
- Refusal to pay the contract price
- Refusal to perform an obligation under the contract, e.g. to deliver goods or services
- Delay in payment or in performance of other obligations
- Defective performance of an obligation under the contract, e.g. defective building work.
Remedies for breach of contract
Once a breach has been established, what can the aggrieved party do? Depending upon the situation there may be a choice of remedies to be considered before proceeding with the best option including:
- Damages;
- Liquidated damages;
- Action for payment as a debt;
- Rescission;
- Repudiation;
- Specific performance;
- Injunction;
- Restitution and Quantum meruit.
The contents of this article is intended to provide a general guide to the subject matter and does not constitute legal advice. Ferrer Lawyers always recommend that you immediately obtain legal advice if a party alleges breach of contract against you or you intend on issuing a breach notice.