A contract is a legally binding agreement. When one party fails to uphold their obligations under a contract, it’s considered a breach. At Scherini Lawyers in Melbourne, we help individuals and businesses navigate breach of contract disputes. This guide explains the key concepts, your legal options, and how we can assist you.
What Constitutes a Breach of Contract?
A breach of contract occurs when one party, without lawful excuse, fails to perform their obligations as specified in the contract. This can include:
- Failure to Perform: Not performing the agreed-upon actions (e.g., not delivering goods, not providing services).
- Defective Performance: Performing the obligations, but not to the required standard or quality.
- Late Performance: Performing the obligations after the agreed-upon deadline.
- Anticipatory Breach: One party clearly indicates, before the performance is due, that they will not fulfil their obligations.
Types of Contract Breaches
Breaches can be classified in different ways:
- Material Breach (or Fundamental Breach): A serious breach that goes to the heart of the contract, entitling the innocent party to terminate the contract and claim damages.
- Minor Breach (or Partial Breach): A less serious breach that does not entitle the innocent party to terminate the contract, but they can still claim damages for any losses suffered.
- Anticipatory Breach: As mentioned above, a clear indication of future non-performance.
Remedies for Breach of Contract in Victoria
If you are the victim of a breach of contract, several remedies may be available under Victorian law:
- Damages: Monetary compensation to put you in the position you would have been in if the contract had been performed. This is the most common remedy.
- Specific Performance: A court order requiring the breaching party to perform their obligations under the contract. This is usually only granted when damages are not an adequate remedy (e.g., for unique goods or property).
- Injunction: A court order preventing the breaching party from doing something (e.g., breaching a confidentiality clause).
- Rescission: The contract is terminated, and both parties are returned to their pre-contractual positions (as far as possible).
- Termination: Ending a party’s obligations under the contract.
Steps to Take After a Breach of Contract
- Review the Contract: Carefully examine the contract terms to determine the specific obligations and any clauses related to the breach.
- Gather Evidence: Collect all relevant documents, emails, and other evidence related to the contract and the breach.
- Seek Legal Advice: Consult with a lawyer to understand your rights and options.
- Send a Letter of Demand: A formal letter demanding that the breaching party remedy the breach or pay compensation.
- Negotiation/Mediation: Attempt to resolve the dispute through negotiation or mediation.
- Court Proceedings: If other methods fail, you may need to commence legal proceedings.
How Scherini Lawyers Can Help with Breach of Contract Disputes
- Expert Legal Advice: We provide clear advice on your rights and the best course of action.
- Contract Review: We review contracts to identify potential breaches and advise on your options.
- Negotiation and Dispute Resolution: We represent you in negotiations and mediation to achieve a favourable outcome.
- Court Representation: We represent clients in all Victorian courts, including the Magistrates’ Court, County Court, and Supreme Court.
- Other areas: Contracts are used for business, so you may need to discuss commercial and dispute resolution options.
Contact Our Melbourne Breach of Contract Lawyers
If you believe you have suffered a breach of contract, or if you have been accused of breaching a contract, contact Scherini Lawyers for a confidential consultation. We can help you protect your rights and achieve a just resolution.
