Breach of Commercial Contract
If a business or professional you work with has failed to meet its obligations under a contract, it’s important to understand your options early. Our commercial disputes lawyers advise on pursuing breach of commercial contract claims, helping you resolve disputes quickly and protect your commercial relationships.
Contact our breach of contract lawyers
If you are facing a contractual dispute, get in touch. Our business dispute lawyers advise businesses across the UK from our offices in Bristol and the surrounding area in Bedminster, Bishopston, Bristol city centre, Kingswood and Thornbury.
Call us on 0117 325 2929 or fill out our online enquiry form.
What counts as a breach of contract?
A breach of contract occurs when one party fails to fulfil their obligations under an agreement.
Contract breaches can happen in several ways: a party might fail to perform their obligations at all, perform them poorly or incompletely, or complete them later than agreed.
The way a breach is treated depends on its seriousness and what it means for the contract and business going forward. It also depends on the type of term that’s been broken and how significant the failure is.
Types of contract breach
Some of the most common types of breach include:
- Minor or partial breach, when one party fails to perform a small part of the contract, but the rest of the agreement is largely unaffected. The non-breaching party may be entitled to claim damages for any loss caused.
- Material or repudiatory breach, which is serious enough to deprive the other party of the whole benefit they were meant to receive. The ‘innocent’ party may be entitled to treat the contract as terminated and claim damages.
- Anticipatory breach, which occurs when one party makes it clear, before performance is due, that they won’t fulfil their obligations. The non-breaching party can treat the contract as breached immediately and take legal action.
How is a breach of contract resolved?
When a breach of contract occurs, several remedies may be available depending on the circumstances:
- Damages. These are designed to put the non-breaching party in the position they’d have been in had the contract been adhered to. In some cases, these can include lost profits.
- A specific performance order. This court order requires the breaching party to carry out their original obligations, rather than pay compensation.
- An injunction to prevent a party from doing something that would breach the contract, such as breaching a restrictive covenant or confidentiality clause.
- Rescission, which allows the non-breaching party to cancel the contract entirely and be restored to their original position. This is only available in limited circumstances.
Which remedy is appropriate depends on the nature of the breach, what’s set out in the contract itself, and the outcome you’re looking for.
Your lawyer will be able to advise on the best course of action. Most breach of contract claims are resolved through informal discussions, negotiation or mediation rather than formal proceedings. If informal discussions don’t resolve the matter, your lawyer can help send a formal letter before action, setting out the breach and what you’re seeking.
Many commercial disputes can be resolved without going to court, saving time and cost. However, if your claim does go to court, our expert Commercial Disputes team has the expertise and experience to guide you through it.
Barcan and Kirby’s expertise in breach of contract claims
Our Commercial Disputes team has extensive experience advising businesses on breach of contract disputes, from initial contract review through to negotiation, mediation, and litigation where necessary. We take a proportionate approach, focusing on resolving disputes as efficiently as possible while protecting your commercial interests.
Our wider Commercial Services division can also advise on:
- Corporate and commercial law
- Commercial property disputes
- Contract disputes
- Debt recovery
- Director disputes
- Employment law
- Insolvency
- Partnership disputes
- Professional negligence
- Removing a director
- Shareholder disputes
- Unfair prejudice claims
Breach of commercial contract FAQs
If you believe a contract has been breached, a few early steps can make a significant difference:
- Review the contract carefully, including any dispute resolution provisions that set out how issues should be raised
- Gather evidence of the breach and any resulting loss, including correspondence, invoices, and delivery records
Early legal advice can help you avoid escalating a dispute unnecessarily, while ensuring your position is protected if formal litigation becomes necessary.
Breach of contract disputes arise across a wide range of business relationships, and some of the most common include:
- Supply chain agreements, where goods are delayed, defective, or not delivered at all
- Distribution and franchise agreements, where one party fails to meet their obligations
- Service agreements, where work isn’t completed to the agreed standard or timescale
- Late or non-payment for goods and services
- Non-disclosure agreement (NDA) or confidentiality breaches between commercial partners
In England and Wales, the standard limitation period for breach of contract claims is six years from the date of the breach. However, this can vary depending on how the contract was made and its terms.
No. Spoken agreements and contracts implied by conduct or trade custom can still be enforceable.
If a business is unable to pay, you may need to consider insolvency proceedings or other enforcement routes. Our team can advise on the most effective way to pursue recovery in these circumstances.
Get in touch with our breach of contract lawyers
If you’re dealing with a breach of contract dispute, our Commercial Litigation team is here to help. Contact us on 0117 325 2929 or fill out our enquiry form.