Bristol Solicitors

Things to consider before acting on a breach of contract

1. Check notice provisions

A valid right of termination can be invalidated by failure to adhere to set notice procedures in the  contract.

2. Consider all the implications including the nature and effect of the breach of contract

Seeking to terminate a contract based on the other party’s breach can be risky, since termination is an option only available for a fundamental breach. Always check the contract to establish whether fundamental breaches are identified and if the breach in question is not included, be wary, since contract terms and conditions do fall into different categories, with different remedies available. Termination without the right to terminate could in fact result in repudiating the contract and liable to pay damages !

3. Consider alternative options and think commercially

Do you have a genuine reliance upon the other contract party ? What are the options if you get into dispute over the contract. What is the bigger picture and potential implications to your business ? It is worth drawing up a list of all implications, legal and non-legal, before acting.

4. Get all your paperwork and evidence ready if there may be a dispute

Following a contract termination, litigation often ensues and it is vital to compile evidence which  you will in future rely upon

5. Consider all available legal remedies

Litigation rarely results in recovery  all of costs and expenses, even with a very strong case, and there are inherent risks, such as the other party’s ability to pay any judgment. Also, check the contract for any exclusion or limitation of liability clauses which could restrict recovery.

General information about our commercial litigation services in Bristol.