Contracts are made every day. If you buy goods or services you have made a contract. A contract does not require you to sign a document and many contracts are made without you even thinking about it, such as buying things like food, clothes or other goods in shops.

What we more often think of as ‘contracts’ are also made when we engage someone to perform a service, such as a builder to fit a new bathroom.

What do I have to prove to bring a claim?

You may be able to bring a claim for breach of contract if your agreement with another person or organisation has not been carried out properly or to a proper standard. For example, you might have been supplied with faulty or substandard goods, or a builder has carried out works badly.

To make a claim for a breach of contract you will have to show that:

1. A contract existed between you and another person or organisation (‘the other party’); and
2. That contract was breached by the other party; and
3. The breach of contract caused you a financial loss.

Do I have a claim - has my contract being ‘breached’?

Whether there has been a breach of contract will depend very much on the type of agreement and the facts.

Breach means a ‘break’ – a breach of contract is where one or even both parties to the contract fails to carry out their responsibilities properly. For example, if you took your car to a garage for a services and it does not work afterwards, the garage will most likely have breached the contract it had with you.

If the breach is not remedied it may give you the right to claim damages.

What damages can I claim?

You may be entitled to compensation if you can show that you have suffered a clear financial loss. You need to be able to demonstrate your loss, by documentary proof if possible. This might include additional expenses you incur because of the breach of contract, for example if a builder carries out a job badly and you have to make additional phone calls and take time off work to wait for repairs to be carried out.

Compensation for breach of contract seeks to put you back in the position which you would have been if the breach had not occurred – that is, if the contract had been performed properly.

You have a duty to ‘mitigate your loss’ which means you must take reasonable steps to ensure that your financial losses are kept to a minimum and not take any unreasonable steps to increase your loss.

It is very rare for English Courts to award any compensation for inconvenience, distress or hurt feelings.

Sometimes, compensation is not the remedy awarded by the Courts; in some situations it is possible to make a claim to oblige the other party to properly perform the contract.

How can you help me?

The first step we would take on your behalf is to consider the contract and any other paperwork and discuss with you what has happened. We will check the terms and conditions of the contract for the details on termination and the penalties that may be incurred for breach.

We will also consider if there has been a breach of contract and whether this has caused you a loss. It may be that you require advice from an independent expert to assess your losses, for example an expert surveyor if sub-standard building work has been carried out so as to provide an estimate of the cost of rectifying those works.

How do I bring a claim?

To initiate a claim for breach of contract we would first prepare a letter of claim setting out the factual background, the breach and how this has caused you a loss. The Court rules require such a letter before any Court action is taken. That letter would require the other party to provide a full response within a set timescale.

As a last resort, you can sue for breach of contract and damages and we will explain the process and details of Court action to you if this is required. There are other ways of dealing with a dispute, such as mediation and negotiation before Court action is considered.

Is there a time limit for bringing a claim?

If you are claiming for breach of contract then you must bring your action against the other party within 6 years of the date of the breach of contract. In certain cases there may be different time limits and we will discuss these with you.

If your claim is not brought within the proper time limit you will not be able to pursue the claim.

Before ending a contract or stopping it early, always seek legal advice as it might save you considerable time, inconvenience and expense.