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Business
Contracts are the lifeblood of a business, and you need to be able to rely upon people performing their part of the arrangement. But what can you do when things go wrong?
Do I have a contract?
If you have made an agreement with a person or company to perform a task or provide a service for an agreed fee, then you probably have formed a contract.
An example would be instructing a contractor to carry out work at your premises, but then finding that the work was not up to a decent standard. The same example may apply from the contractor's perspective where a contract was agreed to carry out works and they have not been paid. Both examples represent a breach of contract.
To form a contract there also needs to be an intention to form legal relations. This means that the agreement has to be more than simply a loose arrangement between people, which was not intended to be formal.
Does a contract have to be in writing?
Many people believe that a contract must be in writing, but this is not always the case. Contracts can be made by verbal agreement and breaches of a verbal contract are enforceable.
Understanding the contract
The first step is to understand all the terms that are contained in a contract, whether the agreement was made orally or in writing. It is vital to establish as soon as possible what your rights are under the express and implied terms of the contract, together with any other documents such as terms and conditions.
The contract may impose strict time limits for you to bring a claim, set which Courts are able to deal with any claim or allow you to immediately terminate the agreement.
What can I sue for?
The aim of making a claim for breach of contract is to put you in the position you would have been if the contract had been performed correctly. In most cases this means the Court ordering the party in breach to pay damages to the successful party or to complete a specific task.
The Court will not make an Order that puts you in a better position than you would have been if there had not been a breach of contract.
How much will Court proceedings cost?
The cost of making a claim depends on the level of your losses and whether the claim is defended by the other side. Our specialists will be able to provide you with an estimate of costs at your initial meeting and will keep you regularly updated as the case progresses.
If you succeed in a claim valued at more than £10,000.00 then your opponent can be ordered to pay a proportion of your legal costs in addition to any compensation payment.
If your debt is under £10,000.00 the amount of costs you recover will be very limited and, in some cases, we may suggest you seek guidance from the Citizens Advice Bureau before instructing a Solicitor.
At Nowell Meller, we are aware that Court proceedings can be expensive and therefore we are only able to assist with debt claims of over £5,000.00 for businesses. Please refer to our Debt Recovery page for specific information on this.
Do I have to start Court proceedings?
The simple answer is “no”. Often the best result for a client is to negotiate a settlement without beginning Court proceedings. Our Dispute Resolution experts are focused on finding the best solution for you and will use their experience and skills to get the result you need without a costly legal battle. There are occasions however when Court proceedings are necessary in order to resolve disputes.
If you believe you have a breach of contract claim, please do not hesitate to contact us on 01785 252377 for Stafford, 01782 987551 or Newcastle-under-Lyme.
