Breach of contract claim: how to sue for broken agreements

A breach of contract happens when someone fails to do what they agreed to in a contract. If this costs you money, you can sue them for breach of contract in the English and Welsh courts. Most contract disputes under £10,000 go through small claims court.

What counts as breach of contract?

A breach of contract occurs when someone:

• Doesn't perform at all - They simply don't do what they promised
• Performs poorly - They do the work but it's substandard
• Performs late - They do it, but after the agreed deadline
• Repudiates - They say they won't perform before the deadline when they were supposed to perform

Examples:

• A builder doesn't finish the work
• A supplier delivers faulty goods
• A contractor misses the agreed deadline
• A customer refuses to pay for completed work
• A service provider doesn't deliver what was promised

Do I need a written contract?

In most cases, no. Contracts can be:

• Written - Signed documents, terms and conditions, emails
• Verbal - Spoken agreements (harder to prove)
• Partially verbal and partially written - i.e. a combination of telephone calls, meetings and emails.
• Implied - From conduct or circumstances

A written contract makes proving your case easier, but in most cases even a text message or email exchange saying "Yes, I'll do X for £Y" can be a valid contract.

There are a few special cases where the contract has to be in writing, such as certain contracts relating to land, but these are the exception. That said, it is always advisable to contract on the basis of a written contract.

What can you claim?

Where a customer has not paid you for goods or services you have provided, you have a debt claim. You can claim the debt you are owed, plus interest, plus certain costs.

For most other breaches of contract, you can claim damages to put you in the position you would have been in if the contract had been performed properly.

You can typically claim:

• Cost of getting someone else to finish/fix the work
• Loss of profit caused by the breach
• Wasted costs (materials, time)
• Reasonable consequential losses

You cannot claim:

• Losses that were unforeseeable
• Losses that are too remote from the breach
• Punitive damages (punishment)
• Compensation for upset or inconvenience (usually)

How to make a breach of contract claim

Step 1: Gather evidence

Collect everything that proves:

• A contract existed (written agreement, emails, quotes accepted)
• What was agreed (scope, price, deadlines)
• The breach (photos, inspection reports, correspondence)
• Your loss (invoices for remedial work, quotes, receipts)

Step 2: Send a letter before action

Before going to court, you must send a formal letter:

• Stating the breach
• Explaining your loss
• Demanding payment/remedy
• Giving a deadline (14-30 days)

This is legally required. Courts expect you to try to resolve disputes before filing a claim at Court.

Step 3: File a court claim

If they don't respond satisfactorily, file a claim:

• Online through Money Claim Online
• Or through Garfield for automated processing of debt claims.

Court fees:

These can be found by googling for the Court's EX50 form (https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50/civil-court-fees-ex50).

Step 4: Court process

• Defendant has 14 days to respond
• If they don't respond: Default judgment
• If they defend: Directions questionnaire, possibly mediation, then hearing

What about unpaid invoices?

An unpaid invoice is usually a debt claim:

• You agreed to provide goods/services
• You provided them
• They agreed to pay
• They didn't pay

This is breach of the payment term of the contract and the type of claim is a debt claim. The process is the same.

Responding to their defences

Common defences and how to address them:

"The work was substandard"

• Provide evidence of what was agreed vs delivered
• Get an independent assessment if needed
• Show they didn't complain at the time

"I never agreed to that"

• Show the contract/emails/messages
• Provide witness evidence if verbal

"The price was different"

• Show the quote they accepted
• Show invoices they previously paid

"You caused the breach"

• Show you performed your obligations
• Demonstrate any delays were their fault

Small claims vs higher courts

For most breach of contract claims under £10,000, small claims court is the way to go. It's:

• Cheaper (with fixed recoverable lawyer fees)
• Faster
• Informal (no need for a solicitor)

Time limits

You have 6 years from the date of breach to bring a claim (Limitation Act 1980). For contracts made by deed, it's 12 years.

Don't leave it until year 5 to take action. The longer you wait, the harder it is to gather evidence and prove your case.

Letter before action for breach of contract

Your letter should include:

1. The parties - Your details and theirs
2. The contract - What was agreed and when
3. The breach - Exactly what they did or didn't do
4. Your loss - How much it cost you
5. Your demand - What you want them to do
6. Deadline - Typically 14-30 days
7. Consequence - Court action if they don't comply

For debt claims, there are special rules about what the letter before action needs to say.

How Garfield helps

Garfield handles breach of contract claims for unpaid invoices automatically:

• Professional letter before action
• Correct legal wording for particulars of claim
• Automated court filing
• Deadline tracking throughout

Most unpaid invoices are breach of contract claims at their core. Garfield streamlines the process so you can recover your money without becoming a legal expert.

For more complex breach of contract disputes (defective work, non-delivery), the basic process is similar.