Contract Litigation Lawyer Services

Definition of Breach of Contract

Company A wants to install a completely new computer network system and approaches Company B to supply and maintain the new system. After a number of meetings, someone at Company A signs a quotation attached to an agreement to supply and maintain the new system.  The quotation says that Company A shall make 4  instalments of £250,000 each to Company B as payment for the supply and maintenance of the new computer system. Company A then realises that they could have got a much better deal elsewhere and wish to cancel the contract with Company B. Company A writes to Company B refusing to pay, saying that the contract is cancelled because of, amongst other things, the cooling-off provisions of the distance selling regulations.

Understanding Anticipatory Breach

When a party fails to perform any obligation under a contract or performs an obligation improperly then this is said to be a “breach of contract”. In this case Company B will say that by trying to cancel the alleged contract Company A is in breach of contract. When one party makes it clear that it does not intend to fulfil the contract it is considered an anticipatory breach. When Company A states clearly that performance will not happen, it is said to be an “anticipatory repudiation”. If Company behaves in a way that clearly demonstrates it is not going to perform it is an “anticipatory breach by conduct”.

In the case study above, Company B may sue for breach of contract. In the scenario of an anticipatory repudiation Company, B may wait for the time the obligation is supposed to be performed or they could sue immediately in an action for damages. Damages to compensate Company B for breach of contract fall into two types: ‘expectation’ or ‘reliance’ damages. ‘Expectation’ damages are intended to put Company B in the position it would have been in if Company A had met its obligations under the contract.

Expectation damages are generally the way damages for breach of contract are assessed. Damages for loss of expectation are measured in four ways: the cost of rectification; the difference in value between the actual and expected performance; the difference in cost to Company B between actual and expected performance; and loss of amenity. Reliance damages or wasted expenditure losses are incurred where Company B decides that expectation losses are inappropriate. Reliance damages seek to compensate Company B for losses incurred as a result of relying on Company A’s alleged promises. You cannot recover both expectation losses and reliance losses.

Other Remedies

In some cases, Company B may be able to compel Company A to perform its obligations under the agreement, known as “specific performance”. Company B may also be able to get an injunction to enjoin Company A from doing something that was prohibited by the broken contract.

Company B may also rescind the agreement if the breach was of a material term, and Company A returns everything to its original position before the contract was made.

You should consult with a contract litigation Lawyer if you are Company A in this scenario because it is not always the case that there is an agreement. Amongst other things, the fact that only a quotation was signed may make a difference. In the above example, the distance selling regulations are irrelevant in assisting Company A. In other words, there are several esoteric legal issues as well as county court and high court civil procedure rules
 to consider when bringing or defending a claim for breach of contract.

We offer transparent pricing and can discuss our fee structure during your consultation.

Yes! We prioritise negotiation and can often resolve disputes without the need for a trial.

Please bring all relevant documents related to your contract and any correspondence you’ve had concerning the dispute.

Expertise in Non-Performance Cases

Our solicitor possesses extensive experience in handling cases involving non-performance of contractual obligations. This experience translates to robust strategies aimed at maximising your recovery, including any loss of profits you rightfully deserve. When faced with breaches of contract, you need a team that knows the ins and outs of contract law, and we are here to help.

Proactive Strategies and Solutions

Having our firm on retainer gives you access to seasoned legal minds who can develop proactive strategies tailored to your specific situation. By anticipating potential disputes and addressing them early, we can often help you avoid costly litigation altogether.

Effective Negotiation and Resolution

We pride ourselves on our strong negotiation skills. Our goal is to resolve disputes efficiently and effectively, protecting your interests along the way. With our firm, you have a better chance of achieving a favourable outcome, whether through negotiation, mediation, or litigation.