A breach of contract in Australia usually occurs when a party is unsuccessful in fulfilling its promises under a contract without any proper excuse. There are many ways a contract can be breached, and in this case, there are people who hire lawyers.
Before you hire the top lawyers in your area, you must know more about the causes of breach of contract. The party that alleges breaching the contract usually has to prove that the failing party did not uphold their side of the bargain. In this guide, you will learn some of the reasons for a contract breach and types of contract breaches.
Types of Contract Breaches
Some of the contract breaches that you can find in Australia are as follows:
Minor contract breach
A minor contract breach is also known as a partial breach, and this happens when the contract terms have been partially fulfilled. One example of a contract breach is when a goods supplier is unable to supply all the goods, or any computer firm has some pages missing from the manual or some products.
Before you look to hire lawyers you must know How to prove a Breach of Contract, you must know that a minor breach cannot lead to an immediate contract cancellation. The seller must look to remedy the contract breach.
This is one of the serious forms of contract breach. A material contract breach is a form of a breach that includes an important element of the contract not performed or undertaken as formerly agreed. When this form of breach happens, the non-breaching party has the right to seek a remedy and has the right to be compensated by the other party.
For any contract breach to be material, it must have a long-lasting or serious effect on the benefit that a party is expected to receive. An example of any material breach of contract is when any service does not do the thing that is told to them. The party that suffered from a material breach can choose to claim remedies that include damage or a court order for certain performance for enforcing contract terms.
Anticipatory contract breach
Before you know the reasons for the breach of contract, you must know more about this type of contract breach. An anticipatory breach usually arises when a party realises that the other party is not going to fulfil the contract terms that they need to do so.
The breaching party can choose to notify the non-breaching party either verbally or in writing of their intentions to fulfil their part of the contract. Also, the non-breaching party should understand that they will not be fulfilling the due obligations.
This kind of contract breach allows the non-breaching party to take legal action instead of waiting till the contract terms get broken. The non-breaching party can also choose to seek damages for the losses they suffered and ask for proper termination of the contract.
Actual contract breach
This form of contract breach occurs when a party fails to perform their contractual obligations. This breach arises when one party in a contract is unable to fulfil their duty by the given date. This kind of contract breach also occurs when a party fulfils their obligations but does not follow the contract terms.
This indicates that the breaching party’s work was done improperly and not done in a satisfying way. In these kinds of situations, the other party will not have to perform their obligations and can hold the breaching party responsible for the contractual breach.
What Are Some Things to Know?
If your contract with a party has been breached in any of the ways provided above, you must work on the remedies that are available. The most important remedies that are available for these cases are specific performance and damages. In case of damages, the Australian court will decide the damage that is caused by the contract breach and will direct the party in breach to make payment online or in cash.
The court can also choose to order specific performance to be able to enforce the contract terms even after it has been breached. You can take the help of the best lawyers in your area when it comes to contract breaches. Due to their expertise and experience, they can inform you how to act.
How Can You Discharge Your Contract if There’s a Breach?
You can easily discharge a contract when it comes to an end. There are different ways by which you can discharge a contract:
- You can discharge a contract by agreement
- You can discharge a contract by the law’s operation
- You can discharge a contract of frustration
- You can discharge a contract by a subsequent agreement
- You can discharge a contract by performance.
But you must know that a contract can also be discharged by an election to eliminate the contract after a breach.
What Usually Happens When There is a Contract Breach?
Before you opt to hire the top breach of contract lawyers Perth, you must know what happens after there is a contract breach. If there is a contract breach or any serious breach of the contract, there will be an election after repudiation. After this, the aggrieved party can choose to affirm the contract or even eliminate the contract. Later, they can choose to recover the damages too.
How Do You Prove a Contract Breach?
A contract breach will usually depend on the facts related to your specific case and the contract’s terms. To be able to prove a contract breach, you have to gather and provide proper evidence of the facts that will give you legal rights.