Breach of Contract – Know How to Prove it?

November 28, 2023    commerciallawyersinperth
Breach of Contract – Know How to Prove it?

Nowadays, agreements are a necessary part of practically every business transaction. Agreement and contract are synonymous and are used interchangeably to describe the same thing. One such typical corporate issue that requires legal assistance is a breach of contract.

In Australia, if one of the two parties involved in a contract fails to meet their end of the bargain or service, the other party can take legal repercussions. If a party alleges a breach of contract—whether through performance default or anticipatory breach – they have the burden of proving it.

However, many corporate firms, as well as entrepreneurs in Australia, still don’t know how to prove a breach of contract. Although legal counsel can guide you through the entire procedure, it’s still best to know the remedies to avoid a breach of contract and how to prove it. So, let’s learn it all.

Breach of Contract: Remedies You Need To Know

A court may grant you one of three primary remedies for violation of contract:

1. Damages:

Regardless of whether the breach resulted in a loss, the party harmed by the contract is entitled to damages if a condition, intermediate-term, or warranty is broken. The harmed party is nonetheless entitled to “nominal damages” (about $100, according to recent case law) even if no loss can be demonstrated.

2. Particular Performance:

A party that has been harmed may ask a judge to issue orders ordering the party who broke the agreement to fulfil their end of the bargain. For instance, B may request a court order compelling A to appear at settlement and give the land to B if A violates the terms of the contract by neglecting to do so.

3. Termination:

In the following situations, a breach may give rise to the injured party’s right to end the agreement:

  • When a party shows negligence in fulfilling their responsibility by violating a middle clause, This becomes the cause of contract breach for materialistic loss for the other party.
  • When the breach results in ‘repudiation.’ It is the act of a party resembling their intention not to stay legally bound by the agreement’s terms and conditions or to use the terms in a way that materially contradicts their roles and responsibilities.
  • Whenever a party breaches or violates a contract clause and shows negligence to fulfil a condition outlined as a major clause of the written contract.

Note: If the other party breaches the contract in any of the above-mentioned ways, but you need legal assistance to prove it in court, consult the best commercial lawyers in Perth.

Proving a Breach of Contract: What Does The Australian Law Require?

Here are a few fundamental things of a breach of contract the plaintiff must provide to prove their case:

  • First things first: Show evidence of the existence of a legally binding written contract. You must have a legitimate and valid contract signed by you and the other party (defendant).
  • You were in the performance of the contract, which means you fulfilled your end of the bargain or were released from fulfilling it.
  • The party being sued did not fulfil all of their contractual obligations, which resulted in a breach of the contract’s material (important) term, which the defendant actually committed.

Once done, you must show what consequential loss or damages you endured. These damages may include:

  • Loss of anticipated profits
  • Loss of goodwill
  • Loss of sales of contracts
  • Loss of supplies or money
  • Loss of business
  • Loss of reputation

Prove that your losses were directly caused by the defendant’s breach of the contract, which was the proximate cause of the damages you experienced.

Breach of Contract: Example

Cases involving tenants and landlords are typical instances of contract breaches. A tenant may be held in violation of the lease if they neglect to pay their rent. Since the renter and landlord have a written agreement to rent, this situation satisfies all the criteria for a breach of contract lawsuit. By failing to pay the rent, the renter violated the terms of the agreement and caused the landlord financial harm.

Things To Consider For a Breach of Contract Litigation

Both individuals and corporations need to be aware of the many subtleties of contract law. Additionally, you must consider a few things before bringing a breach of contract lawsuit.

The statute of limitations is essential in any dispute involving a breach of contract. A lawsuit for breach of contract can only be filed within a specific time frame allowed by state legislation.

Given your state and if the contract was a verbal or written agreement, this statute of limitations may range from one to ten years. Consequently, you must confirm that your agreement’s relevant statute of limitations hasn’t passed away.

It’s also important to know that if your contract calls for mediation or arbitration, you must agree to participate in these procedures before bringing legal action.

When a breach of contract lawsuit is finally required, you must consider which court is best for your case, how to serve the defendant, and how to file your papers. If all these seem like a big hassle, hire the best breach of contract lawyers in Perth.

Compensation To Expect From a Breach of Contract Case

  • Suing The Other Party For Specific Performance

A “specific performance” order is one that the court can issue, directing the party that has not fulfilled their end of the bargain to do so. The court orders the parties to comply specifically where the damages granted do not fully compensate for the breach of the agreement. These orders are typically given for land sales or contracts involving special subjects, such as an uncommon vintage car.

  • Get an Injunction

The court may order a person to refrain from committing or repeating an unlawful act if it is impossible to collect the damages resulting from the breach of contract. These court orders are called “injunctions.”

  • Suing The Other Party For Damages

When a contract violation harms a party, the court usually gives damages to make up for the loss they endured. Nominal damages, acknowledging that a legal right has been violated, may be granted if the harmed party has not suffered a significant loss. Typically, there are two types of damages that you file a claim for:

1. Liquidated Damages

If a contract expressly states that the party at fault must pay a certain sum in the case of a breach, then that sum must either be liquidated or converted to penalty damages.

2. Unliquidated Damages:

The court will determine the damages to be awarded if there is evidence of a contract violation if the contract is silent on the subject.

Conclusion

If any of the four scenarios in this article describe how a party has violated your contract, you should determine what remedies and compensation you’re entitled to. Specific performance and damages are the two primary forms of remedies available for contract breaches.

Regarding compensation, the court assesses the harm brought about by the contract violation and orders the violating party to pay a sum of money. In the interim, even after a contract has been broken, the court may nevertheless require particular performance to uphold its provisions.

Never hesitate to contact the best breach of contract lawyer to arrange a consultation. One such amazing team of lawyers in Australia is Commercial Lawyers Perth WA, which can answer all your questions about whether there has been a breach of contract or if you need assistance with your case.

Give them a call if you need any help with contracts for your company from business specialist lawyers.

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