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:

  1. Damages;
  2. Liquidated damages;
  3. Action for payment as a debt;
  4. Rescission;
  5. Repudiation;
  6. Specific performance;
  7. Injunction;
  8. 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.