When someone doesn’t do something that they’ve formally agreed to, it’s incredibly frustrating. Whether it’s a builder who walked off, leaving the job half done, a wedding venue that cancelled your reservation weeks before the big day, or an expensive purchase that arrived broken or faulty, the outcome is the same – you’re left out of pocket.
The good news is that the law is on your side. If someone fails to deliver on a promise – whether verbal, written, emailed, or on a website – it’s known as a breach of contract. Understanding your rights when a contract is breached is the first step to getting the outcome you deserve.
Making it right – four possible outcomes
When you take legal action following a breach of contract, the law has a simple aim – to put you back in the position you would have been in if the breach hadn’t happened. Basically, to “make it right”. Depending on the type of contract and the specific details of your case, there are a few ways to do this.
The right to have the contract performed
In some cases, you can ask the court to force the other party (an individual or a business) to carry out the contract as agreed – i.e. make them do what they originally promised. The legal term for this is “specific performance”. It’s not a common route as courts usually prefer to award refunds and/or compensation. But it’s a valid approach when getting your money back isn’t sufficient – for example, if a unique purchase has fallen through, such as an artwork or a specific plot of land.
The right to terminate the contract
For serious breaches which make the whole agreement invalid (these are known as “repudiatory breaches”), the court may decide that you have the right to terminate the agreement entirely – releasing you from any obligations under the contract. This is used in time-critical cases, such as an event deadline being missed, or serious issues with quality, such as a landscaper felling the wrong tree – a breach that makes the whole service essentially useless.
The right to a refund
Laws, including the Consumer Rights Act 2015, lay out your rights in cases where you've received faulty goods or a service that wasn't carried out with reasonable care. These include the right to a repair, a replacement, or—if the issue can't be fixed—the right to a full or partial refund. This may include the return of any deposit paid in advance of a service being carried out.
The right to claim compensation (or damages)
Compensation is the most common remedy used by the court for breaches of contract. It’s not a punishment for the other party; it’s calculated to restore any losses you've suffered because of the breach. The losses or costs that you can claim for can be broken down into three categories:
- Direct losses: Money you’ve lost as a result of the breach. For example, £1,000 you paid to a builder who didn’t complete the job.
- Remedial costs: Money you paid to put things right after a breach. For example, £500 paid to another builder to complete the unfinished work.
- Consequential losses: Expenses or wasted costs resulting from the breach. For example, lost wages due to taking time off work to deal with the issue.
Your responsibility: mitigating your loss
One key thing to remember in cases involving a breach of contract is that, as well as your rights, you have responsibilities. The most important is the duty to mitigate your loss – that is, the law expects you to take reasonable steps to keep any losses to a minimum.
For example, if a local pub cancels your room reservation for a birthday party, you can’t simply book the most luxurious suite in a city-centre hotel instead, and then expect to be able to recover the cost from the pub. You have to act reasonably, replacing any service with a similar alternative.
This also means giving the other party the opportunity to rectify the issue themselves – in this example, the pub might be able to offer a room at another venue in the same chain nearby, which would serve your purpose.
Affected by a breach of contract? You’re not alone.
Of course, knowing your rights is one thing; enforcing them is another. Navigating a breach of contract can feel overwhelming, but you have powerful legal rights on your side. At Complex Law, we’re on hand to translate those rights into a clear, practical plan of action. If you believe a contract you agreed to has been breached, speak to us today. We’ll help you understand your position, calculate your losses, and fight for a fair resolution.
Frequently asked questions
Is it worth pursuing a claim for breach of contract for small amounts of money?
For disputes under £10,000 in England and Wales, the case is typically heard on the “small claims track” in the county court. A key feature of this track is that you generally cannot recover your legal fees from the other side, even if you win, so you have to consider whether the cost of hiring a solicitor is proportionate to the amount you hope to recover. However, it’s still worth getting initial advice. For example, Complex Law can offer fixed-fee options for initial steps, such as a Letter of Claim, which can often resolve the issue without going to court.
Can I claim compensation for stress and inconvenience?
Not generally. In UK contract law (unlike, for example, the United States), compensation is awarded for financial loss, not emotional impact or frustration. The aim is simply to restore you to the financial position you were previously in. There are some limited exceptions, such as a holiday package ruined by building work at the hotel or dirty accommodation, leaving you unable to enjoy the central purpose of the service – relaxation.
How do I prove what was agreed in a verbal contract?
Proving that a verbal contract can be difficult, which is why having an agreement in writing for any service is always recommended. However, there are various forms of evidence that a judge will consider, including witness statements from people who overheard the verbal agreement, or references to the verbal agreement in texts or emails (such as a text reading, “As we agreed on the phone, you will deliver X”). Conduct is also important. Has the other party started providing the service? Have you made a part-payment already? These are indicators that both parties were acting as if an agreement were in place.
What happens if part of a service was done correctly, but other parts were not?
The general legal principle in these cases would be to offset the cost of rectifying the parts of the service that were not delivered correctly against the total amount owed. So, for example, if a builder is invoicing you £5,000 for fitting a kitchen, but it is going to cost you £1,000 to hire someone else to fix the tiling that was poorly installed, then your starting point would be that you should pay only £4,000.
What if the person or company that breached the contract has no money or has gone out of business?
This is a common issue. Winning the claim is one thing; collecting the money owed is another. If you’re dealing with a person who has no assets or a company that has since dissolved, recovery may be difficult or even impossible. It’s best to seek specialist advice to assess the other party’s likely ability to pay before starting any legal action. Speak to Complex Law, and we’ll give you an honest assessment of the best way forward.
This blog is for general information purposes only and does not constitute legal advice. For advice specific to your circumstances, please contact our team directly.
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