Breach of Contract in Australia - Sunshine Coast Lawyers

Are you a party on a contract, wondering if the other party has engaged in a breach of contract?

If so, you may feel quite confused and annoyed as it is expected that all parties follow the contracted terms and conditions.

It is within your rights for the agreed upon terms to be followed by the other signing body, but it can be difficult to identify whether said terms have been disobeyed.

This is why it’s so important to be informed about breach of contract before signing onto one so that you can avoid having your contract breached by another party.

Furthermore, information can help you to identify when your contract has been breached so you can properly act upon it.

This article will discuss the meaning of the term “breach of contract” and identify the 3 significant types it describes.

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What is a Breach of Contract

So, you may be wondering, what is a breach of contract?

A breach of contract occurs when one or more parties does not follow the terms of a contract signed by multiple other parties.

This can occur under multiple circumstances, such as breaking the specific terms of the agreement, such as fleeing the area to avoid responsibility without notifying the other party, or by not following the time restraints the contract states, such as making payments late. A contract is a legally binding document.

This means that violation of it is unjust in the eye of the law and can result in penalties, served by a court. But what can I do about a breach of contract?

The penalty of a contract breach will result in will occasionally be discussed within the contract itself.

This may include late payment fees or otherwise. However, depending on the type of agreement the contract binds, breaching a contract may result in a civil trial, in which the plaintiff sues for reparations due to the breach.

Types of Contract Breaches

There are four key types of contract breaches, all of which can result in different damages and, therefore, different penalties if they occur. They include:

Minor Breach .
Anticipatory Breach (Repudiation).
Material (Fundamental) Breach.

We will explain these in a little more detail below.

Minor Breach of Contract

One of the types of breach of contract is referred to as a minor breach and can be quite difficult for the other party.

A minor breach takes place when a signing party on a contract violates one or more of the terms on the contract but does not violate the entirety of it.

In order for it to be considered a minor breach, the other involved parties must be able to continue with their business or use the product or service as intended but be inconvenienced or displeased by the contracted or standard quality of the product or service.

The party will still have followed general time regulations and have performed what was required of them by the contract to some extent for it to be considered a minor breach.

This is quite a common type of breach as few signs onto a contract with the intention or the possibility that they will violate the full contracted agreement.

Furthermore, this type of breach is much easier to have taken place accidently compared to its counterparts.

To take action against this type of breach, you can demand the party resolves the issue or sue for reparations for the minor breach.

Anticipatory Breach of Contract (Repudiation)

Another of the types of breach of contracts is referred to as an anticipatory breach and may differ from the others on this list.

An anticipatory breach is described as a breach of contract that, while it has not yet occurred, will occur in the future.

It is, in most circumstances, regarding the time restrictions agreed to by the parties in the contract. But how can you identify an anticipatory breach?

An example of an anticipatory breach can be taken from an example of a contract signed for the service of mowing a lawn. Say, for example, the company agreed to have the acre-long lawn completely mowed by 12pm on Tuesday. It is currently 11:58am on the same Tuesday and the business is yet to begin the process of mowing the lawn.

This is, of course, a smaller scale example but it can be considered an anticipatory breach none the less.

This is because it is physically impossible for the business to mow the lawn of that length within the time, they have left themselves.

The other party may sue the lawn mowing business for an anticipatory breach in this matter.

Material (Fundamental) Breach of Contract

Another form of breach of contract that may take place is referred to as a material breach (or a breach of a material term of the contract) and is the most dire of the lot!

A material breach, otherwise known as a total breach, describes a contract breach in which one party completely fails to undergo the responsibilities or follow the terms contractually agreed upon.

The contract must have been so breached that the entire meaning of the agreement to begin with has been completely disregarded.

For example, you hire a builder to build your home and pay a deposit prior, as well as pay for temporary housing while your home is being built. You later discover that you were scammed and that the house has not been built at all.

This is an example of a material breach and can cause significant issues for the victim.

If you find yourself in this circumstance, it is vital that you take legal action to recover some of the damages caused by the matter.

You can sue the other party for damages as you did not receive the agreed upon benefits that the contract and the money that you paid should have provided.

Key Takeaways

Having your contract breached can be an extremely irritating and stressful occurrence.

You would likely have put something up for offer, such as money or other assets, in order for the agreement to be mutually beneficial, and to discover that your assets have been taken without the benefits or the amount or quality of said benefits agreed upon can be very distressing.

This is why it is important for you to be educated on a breach of contract so that you can quickly identify and act upon such occurrence.

It is wise to employ a litigation and dispute resolution lawyer to help to resolve this matter for you and to make sure that you get the best possible result from it.