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Parties enter into commercial contracts for the provision of services and/or goods in return for payment. If one of the parties fails to honour a term of the agreement then they will be in breach of contract.

A breach may occur if the service is defective or if there is a failure to deliver services or goods. The receiving party may be in breach if they do not pay on time or if they fail to make payment altogether.

If the wronged party goes to court with a breach of contract claim they may be awarded damages to compensate for their loss resulting from the breach.

To help avoid disputes and court action businesses are advised to clearly set out their terms of trading in commercial contracts.

For other legal topics return to the law library.

Breach of contract areas

Breaches in a commercial setting

Parties enter into commercial contracts for the provision of services and/or goods in return for payment. If one of the parties fails to honour a term of the agreement then they will be in breach of contract. A breach may occur if the service is defective or if there is a failure to deliver services […]

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Breaches in the employment context

An employment contract is generally set out in writing, however a contract will exist even if it is not documented. Employers are sometimes keen to change the terms under which their employees work, whether that’s a change in pay and benefits or a change in the nature and place of work. Making a change to […]

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