Contract disputes lawyers Sydney
Contract law disputes
Contracts are of critical importance and are intrinsic in our daily lives as well as all commercial transactions.
It is often the case that parties to a contract will reach a point in their contractual relationship where a dispute arises as to the rights and obligations of each party. Unforeseen circumstances may arise or other events may occur which do not align with the end result that the parties envisaged when originally entering into their agreement.
Commercial agreements
Early intervention and the seeking of legal advice from our contract dispute lawyers may avoid these instances occurring through the preparation of tailored contractual agreements which take into account possible future events.
We can assist you to set up your commercial agreements which would enable you to avoid the occurrence of contractual disputes in the first place.
If a dispute arises in relation to a contract to which you are a party, contact us. Early intervention by a contracts lawyer is critical to success.
Contractual liability & contractual terms
Contractual terms can be express (i.e. specified by the contract which may be oral or written) or implied (i.e. implied into the contract by fact, legislation, or custom). It is important to understand the breadth of the contractual terms which apply.
Contractual terms also need to be interpreted to give effect to the intention of the parties and there are a number of different rules which dictate how this is done.
Contractual terms are also classified differently (some may be conditions, warranties, intermediate terms and so on). Classification is important because this determines the scope and calculation of the remedies for breach of the terms which are available.
Contract breach
A contract breach is a failure to meet the obligations outlined in a contract. The breach can occur due to non-performance, incomplete performance, or delay in performance. A breach can also occur if one party interferes with the performance of the other party.
Types of Contract Breaches
There are essentially three types of contract breaches:
a. Material Breach
A material breach is a severe violation of the terms of the contract. It occurs when one party fails to perform a significant obligation outlined in the contract. Material breaches are also known as repudiatory breaches and breaches of condition because they prevent the other party from receiving the full benefits of the contract. Termination of the contract and damages may be available.
b. Minor Breach
A minor breach (such as a breach of warranty) is a partial violation of the terms of the contract. It occurs when one party fails to perform a minor obligation outlined in the contract. The other party can still receive the benefits of the contract, but they may be inconvenienced and may be entitled to damages.
c. Anticipatory Breach
An anticipatory breach occurs when one party informs the other party that they will not be able to perform their obligations outlined in the contract. This breach may give the other party the right to seek specific performance or terminate the contract and seek damages.
Contractual invalidity
There are also a number of ways in which a contract can be declared to be invalid which include, without limitation:
- Misrepresentation: If a misrepresentation has occurred this may permit the innocent party to either treat the contract as if it had never existed and/or claim damages depending on the circumstances.
- Mistake: There are various different types of “mistake” which the parties can make which may result in the contract being treated as if it never existed depending on the circumstances.
- Undue Influence: If a party has been unduly influenced into entering into the contract it can be treated as if it had never been made depending on the circumstances.
- Duress: If a party has been forced to enter into a contract against their will it can be treated as if it had not been entered into depending on the circumstances.
- Misleading and Deceptive Conduct: Consumers (which may include companies) are protected against conduct which is misleading or deceptive or which is likely to mislead or deceive and damages can be claimed as a result of such conduct.
- Unconscionable Conduct: Conduct which is “unconscionable” may give rise to a range of remedies for the innocent party.
- Illegality:A number of different remedies are also available for contracts which are illegal.
Contractual damages & enforcement
Generally speaking the objective of damages in contract are to place the innocent party in the same position (so far as money can do it) in the same situation as if the contract had been performed. There are various other rules which determine what amounts can be claimed.
Contracts can also be enforced by way of an injunction to compel the other party to perform their obligations.
It is important to note that rights can be lost if they are not exercised promptly and therefore you should seek expert advice at an early stage.
Even if there isn’t a contract, a party who does work at the request of another may be entitled to claim the reasonable cost of doing that work.
Contact our contract dispute lawyers for further information.
Frequently Asked Questions
What are the most common causes of contract disputes?
Common causes include ambiguous contract terms, failure to perform obligations (breach), disputes about whether a valid contract was formed, disagreements about variations or changes to scope, non-payment, and termination. Many contract disputes arise from poor drafting or failure to document agreed changes in writing.
What remedies are available for a breach of contract?
Remedies for breach of contract include damages (compensatory and in some cases consequential), specific performance (a court order requiring performance), injunctions, and termination. The appropriate remedy depends on the nature of the breach and the loss suffered.
How long do I have to bring a contract dispute claim in NSW?
The Limitation Act 1969 (NSW) generally allows 6 years from the date of breach to bring a contract claim. For deeds, the limitation period is 12 years. Acting promptly is important as delay can prejudice your position and ultimately extinguish your right to sue.
Do I need to try mediation before suing on a contract?
Many commercial contracts contain dispute resolution clauses requiring negotiation and mediation before court proceedings can be commenced. Even where not contractually required, mediation is strongly recommended — it is faster, cheaper, and more flexible than litigation.
Can I terminate a contract if the other party has breached it?
You can terminate a contract for breach only if the breach goes to the root of the contract (is a breach of a condition), the other party has repudiated the contract, or the contract expressly provides a right to terminate for the specific breach. Wrongful termination can itself constitute a repudiation. HG Law advises on termination rights before you act.
Professional and on time. Our lawyer is a person of high integrity and is genuinely committed to helping us achieve our goals. If Chris Chang leaves the firm, we will follow him. All aspects of their work were performed at an exemplary standard — skill, timeliness and client service. Good practical advice speedily given and implemented. Responsiveness, quality, professionalism and value. Highly recommend working with Chris — responsive, professional and outcome-focused, and very well-priced given the exceptional quality of work. Chris Chang always responded very promptly. Heathfield Grosvenor have no areas in which they could improve — our experience was nothing but positive. Professional and diligent in their research, prompt and timely in their responses. I achieved a favourable outcome. Highly professional, diligent, and trustworthy services. Chris went above and beyond — and truly cares about his clients. Chris provided excellent advice and great service. I would highly recommend. They made the process seamless for us. Very professional and very knowledgeable in their field. Chris Chang goes above and beyond to get the desired results. Their pricing is fair and you don't feel like you're constantly on the clock. Very professional service and top quality advice — quality, professionalism and value. Excellent and timely advice, professional handling of all issues. All was good, easy communication (we are from Italy), efficient support, fast procedures. Understood exactly the issue and resolved it right away. Made sure I did not include unnecessary expense in pursuing my litigation for a broken contract.Testimonials
