Why Breach of Contract Disputes Succeed – or Fail
Business disputes often depend on what the contract says and how the parties have acted. Courts and tribunals in Victoria look to the written terms and supporting conduct. Clear documentary evidence usually strengthens a claim, while missing records can weaken it.
Key Issues to Get Right from the Start
- Identify the exact term breached – whether express or implied.
- Prove the breach with reliable, dated documents.
- Show how the breach caused financial loss.
- Demonstrate reasonable steps to mitigate loss.
Repudiation and Termination
If one party shows an intention not to perform, the other may treat the contract as ended. Termination, however, carries risk if done incorrectly.
Before terminating:
- Review the contract and any preconditions.
- Check notice and cure requirements.
- Keep detailed records of breaches and discussions.
- Assess the commercial impact if termination is challenged.
Damages That May Be Recoverable
Depending on the circumstances, damages can include:
- Expectation loss – placing you in the position as if the contract was fulfilled.
- Reliance loss – covering wasted expenditure.
- Consequential loss – recoverable only where reasonably foreseeable.
- Interest and costs – subject to court discretion.
Specific performance or injunctions may also be available in special cases, such as for intellectual property, confidential information, or restraints of trade.
Common Defences
- No actual breach or only minor non-compliance.
- Conditions precedent not met.
- Frustration or force majeure clauses apply.
- Liability excluded or limited by contract.
- Contributory conduct or inadequate mitigation.
Preparing a Strong Case
Gather the full contract (and any variations), key correspondence, invoices, delivery logs, and a clear timeline. A damages schedule showing loss and mitigation efforts may help present a consistent and well-supported case.
Where Claims Are Heard in Victoria
Depending on the claim size and nature, matters may proceed in the VCAT, Magistrates’ Court, County Court, Supreme Court of Victoria, or when appropriate the Federal Court or the Federal Circuit Court.
How Scherini Lawyers Can Assist
We assist Melbourne businesses in managing or defending breach of contract claims efficiently and strategically. Our lawyers combine practical commercial insight with experience across all levels of court and tribunal proceedings.
