Contracts support countless personal and commercial agreements—from employment and service contracts to business deals and property transactions. But what happens when one party fails to uphold their end of the bargain? This is known as a breach of contract, and fortunately, the law provides several remedies to address the situation.
At GWCA Solicitors, we regularly help clients enforce their rights when contracts are broken. Whether you’re seeking compensation, performance, or resolution, understanding your legal options is essential.
What Is a Breach of Contract?
A breach occurs when one party fails to perform their contractual obligations, whether partially, entirely, or in a way that undermines the purpose of the agreement.
Common examples include:
- Non-payment for goods or services
- Failure to deliver on time or to specification
- Poor workmanship or performance
Remedies Available for Breach of Contract
When a breach occurs, the non-breaching party is entitled to seek a remedy. The aim is usually to place them in the position they would have been in had the contract been properly fulfilled.
The main remedies available include:
1. Damages (Compensation)
Damages is the most common remedy. The innocent party can claim financial compensation for losses suffered as a result of the breach.
There are different types of damages:
- Compensatory damages – to cover direct losses and expenses
- Consequential damages – for indirect losses, if they were foreseeable
- Nominal damages – small sums awarded when a breach occurred but no significant loss was suffered
- Liquidated damages – pre-agreed sums written into the contract, often used in commercial deals
Damages are intended to make the claimant "whole" again, not to punish the breaching party.
2. Specific Performance
In some cases, a court may order the breaching party to carry out their contractual obligations—especially when monetary damages are not adequate (e.g. in the sale of unique property or assets).
This remedy is more common in property and commercial disputes and is usually only available when the contract is clear and enforceable.
3. Injunction
An injunction is a court order that either:
- Restrains a party from breaching the contract (a prohibitory injunction), or
- Requires a party to take specific action to comply with the contract (a mandatory injunction)
This remedy is often used where urgent or ongoing harm would result from the breach.
4. Rescission
Rescission allows the contract to be cancelled or set aside, releasing both parties from further obligations. It is typically available when there has been a serious breach, misrepresentation, duress, or mistake.
The goal of rescission is to restore both parties to their pre-contract position.
Choosing the Right Remedy
The appropriate remedy depends on:
- The type and seriousness of the breach
- Whether losses can be proven and quantified
- Whether the contract involves unique goods or services
- The wording of the contract and any limitation clauses
It’s vital to seek legal advice early to determine your best course of action and avoid compromising your rights.
How We Can Help
At GWCA Solicitors, our experienced litigation team can:
- Review your contract and assess whether a breach has occurred
- Advise on the best legal remedy based on your goals
- Draft letters before action and negotiate settlements
- Represent you in court proceedings, if necessary
Whether you’re a business owner, service provider, or individual, we’re here to help you enforce your contracts and protect your interests.
Contact us today for clear, practical legal advice if you’re dealing with a breach of contract.