What is a breach of contract?

A breach of contract arises when one party fails to carry out their obligations under a contract without a valid reason. A contract is a legally binding agreement between two or more parties that sets out their rights and obligations. If one party fails to meet their obligations under the contract, this can be considered a breach of contract. These types of breaches are common in all types of agreements, including commercial contracts.

There are different types of breaches of contract, including:

• Minor breach – This type of breach arises when the party who breaches the contract fails to perform a minor obligation or makes a minor error that does not affect the overall performance of the contract.
• Material breach – This type of breach occurs when the party who breaches the contract fails to perform a major obligation or fails to perform a minor obligation in a way that affects the overall performance of the contract.
• Anticipatory breach – An anticipatory breach of contract occurs when one party indicates that they will not be able to perform their obligations under the contract before the performance is due.
• Fundamental breach – This occurs when the breach is so serious that it goes to the root of the contract and the innocent party is entitled to terminate the contract.

In the event that a contract has been breached, the innocent party may be entitled to various remedies, depending on the nature of the breach and the terms of the contract. These remedies may include claiming damages, specific performance, or termination of the contract.

It is important to seek legal advice if you believe that there has been a breach of contract, in order to understand your legal rights and options.

In order to claim for a breach of contract dispute, a number of criteria must be met under contract law. The injured party must first prove that a contract exists. This agreement may be in the form of a written contract or an express contract. Secondly, the claiming party must prove that either an express or implied term of the contract has been breached. Finally, said breach must have led to a financial loss for the claiming party.

Funding a breach of contract claim

Regardless of the nature of the contract that has been broken, whether an employer/employee agreement or a deal with a supplier, it’s essential that you seek specialist advice from a breach of contract solicitor right away.

There are various costs involved in bringing or defending a breach of contract claim. Some of the main costs include solicitor fees, barrister fees, expert witness fees, alternative dispute resolution costs, such as mediator fees and court fees in cases where court proceedings are issued. In addition to these costs, parties also risk potential adverse costs orders being made against them if they are unsuccessful in their case.

Annecto Legal is experienced in helping individuals and businesses in bringing successful claims against other parties, by using a combination of legal expertise and appropriate litigation funding arrangements and insurance in order to present the strongest possible case to the opponent.

How can Annecto Legal assist?

Annecto Legal helps clients realise the value of their contract disputes. We work closely with litigation funders, insurers and breach of contract solicitors that seek alternatives to the traditional hourly rate funding model.

Contact Annecto Legal now to discuss your claim, be put in touch with specialist breach of contract solicitors or to get information about managing the financial risks of litigation.

Unfortunately, because of the high costs of legal actions in the UK, we only assist in disputes which are valued at over £250,000, at the absolute minimum. We would like to be able to help on other claims, but we just don’t have access to any products that can assist on smaller matters I’m afraid.

If you believe your case would be of interest please do share details of the problem and we can arrange a call.

If you have a dispute for the small claims court you may wish to check out the following government website: https://www.gov.uk/make-court-claim-for-money/overview or contact Citizens Advice at https://www.citizensadvice.org.uk/law-and-courts/legal-system/small-claims/making-a-small-claim/

With access to over 60 providers of litigation funding and after-the-event (ATE) commercial legal expenses insurance, Annecto Legal is best placed to source the most appropriate funding package for your case, to maximise your chances of success.