Contract Dispute Resolutions

Posted on June 24, 2020

On a daily basis people and businesses enter into written and verbal contracts, whether that be purchasing a coffee, buying a new car, and not to mention an employment contract or a contract for goods/services. But what happens when a written and verbal contract is breached?

What is a Breach of Contract?

A breach of contract occurs when an individual or business fails to carry out some, or all, of its obligations in accordance with terms of the contract. If a breach of contract occurs then the innocent party is entitled to an award of damages.

How can a Contract Dispute be resolved?

The remedies that the Court may award vary:-

Basic Resolution
A breach of contract could be resolved by an award of monetary compensation which is damages for failures to perform the contract. If there is a breach of a condition then the aggrieved party can terminate the contract and claim any losses through damages. If there is a breach of a warranty then the aggrieved party can only claim damages.
Specific Performance
This is where an order requires a party to carry out an obligation which is something which should have been part of the original contract.
Rescission
If a contract has been entered into as a result of misrepresentation, duress, mistake or undue influence a contact can be set aside meaning that each party can be put back into a similar position to what they were before the contract was made.
Rectification
This applies to written contracts, rectifying mistakes that were made in recording the agreement.

It is important that you seek legal advice from an experienced contract Solicitor

Some of our recent contract dispute work

We have acted for a broad range of individuals and businesses in all aspects of written and verbal contract disputes in the County Court and High Court. Some of our recent successful cases include:

Assisting a director who sued his former employer for breach of contract relating to unpaid sales commissions. The employee initially pursued the claim himself but to no success. Pearson Solicitors and Financial Advisers were instructed and after successful negotiations managed to secure £56,000 for the employee.
Representing a business based in North West who manufactures woollen fibres used in fabrics and furnisher on multiple occasions in seeking recovery of outstanding invoices, and the return of unused fabric resulting from a retention of title.
Representing a business who instructed a builder to construct an access road to farm land in accordance with specific details contained in a written contract. The builder failed to follow the specification and fled the farm land due to bad weather and never returned. Pearson Solicitors and Financial Advisers were instructed and successfully recovered £10,000 from the builder.
Defending an individual from a claim of breach contract by a third party who alleged a verbal loan agreement existed. We were able to establish that the alleged agreement did not contain the key ingredients for a valid contract and the claim was dismissed.

What initial steps should I take before contacting Pearson Solicitors?

If the terms were in a written contract or document:-

It is important you find a true copy of the entire document. This will be used as evidence to demonstrate the obligations of the parties.
If there are any variations to the written contract i.e. the delivery date of goods was changed, or the start date for the service was changed, or the dates for payment of goods/ service was varied, then record all changes to the written contract.

If the terms were in a verbal contract:-

It is important you write down as much information about the contractual words used by the parties and explain by whom, to whom, what was the date, time, and location of the verbal contract?
It is important to establish whether there were any witnesses present or whether the terms of contract were discussed in an email, social media platforms or messages by mobile phone.

Gathering the key documents at an earlier stage will assist in presenting your case in a clear and persuasive manner. For businesses we offer a number of funding arrangements for breach of contract claims and you can find further details using the following links: Range of Debt Recovery services and Debt Recovery pricing.

Experienced Contract Dispute Solicitors

We have a team of experienced litigators with a demonstrated history of dealing with contract disputes. Our services cover advice and assistance, correspondence with the third party to handle your case and Court proceedings. We also have tips on handling contract negotiations.

If you are not sure about your losses following a breach of contract or need further help, please contact our Commercial Litigation Team and speak to Chris Burke on 0161 785 3500 or email enquiries@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.