Contracts are the backbone of any business relationship, ensuring all parties know where they stand. But breaches of contract can and do happen—sometimes disrupting operations, causing financial loss, or even damaging hard-earned professional relationships. Knowing how to handle a breach of contract effectively can protect your business and keep things on track.
Here’s a practical guide to navigating a breach of contract—and how Jamieson Law can support you through the process.
What is a breach of contract?
A breach happens when one party fails to meet the terms agreed in the contract. This can take several forms:
- Material breach: A significant failure that undermines the core purpose of the contract.
- Minor breach: A smaller issue, such as a missed deadline, that doesn’t render the contract unworkable.
- Anticipatory breach: When one party indicates they won’t be able to meet their obligations.
Understanding the type of breach will inform what action you’ll need to take next.
Step 1: Review the contract
Start by revisiting the contract itself. You’ll need to pay attention to:
- The specific obligations of all parties.
- Clauses that outline dispute resolution or remedies for breaches.
- Deadlines or notice periods that may apply.
If anything is unclear, don’t guess—seek legal advice to fully understand your rights and options.
Step 2: Communicate with the other party
Many breaches can be resolved with a simple, professional conversation.
- Notify them: Put the issue in writing, referencing the relevant clauses and explaining the breach clearly.
- Propose a solution: Offer practical ways to resolve the problem, such as fulfilling the obligation, renegotiating terms, or agreeing on compensation.
A calm, proactive approach often helps prevent the issue from escalating.
Step 3: Explore mediation or negotiation
If communication doesn’t work, bringing in a neutral third party can help move things forward.
- Mediation: A mediator can help facilitate discussions and find common ground.
- Negotiation: Adjusting the terms of the contract might be the most practical way to resolve the issue.
These methods are usually faster, more cost-effective, and less stressful than going straight to court.
Step 4: Consider legal remedies
If the breach remains unresolved, you might need to explore legal options, such as:
- Damages: Financial compensation for any losses caused.
- Specific performance: A court order requiring the other party to fulfil their obligations.
- Termination: Ending the contract and seeking compensation for damages.
Each route has its own implications, so it’s crucial to get legal advice before deciding how to proceed.
Step 5: Prevent future breaches
Once the issue is resolved, take steps to reduce the risk of future breaches:
- Draft clear, tailored contracts: Ambiguity is often the root of disputes.
- Include dispute resolution clauses: Make sure there’s a clear process for handling disagreements.
- Monitor compliance: Regularly check that all parties are meeting their obligations.
How Jamieson Law can help
By establishing contracts with well defined terms, you can help to mitigate breaches before they happen. At Jamieson Law, we specialise in supporting businesses through contract drafting and then if needed, with practical, no-nonsense advice to find reasonable resolutions should a breach occur.
Here’s how we can help:
- Draft contracts: We’ll draft terms that protect your business and mitigate the risk of a breach.
- Expert contract reviews: We’ll review and make sure you understand your rights and position clearly.
- Guidance on resolution strategies: You can expect clear communication (no jargon) allowing you to negotiate with confidence.
If you’re dealing with a breach—or want to ensure your contracts are watertight for the future—let’s talk.
📅 Book your free discovery call today to find out how we can help protect your business.
With the right steps and support, a breach of contract doesn’t have to derail your progress. Let’s work together to safeguard your business and keep things moving forward.
