Australian contract law is all about mutual agreement. When you agree to do something for someone, and they agree to do something for you in return, that’s a contract. But if you don’t keep your end of the deal, that’s called a breach of contract.
So, in this article, we will delve into the crucial aspect of a contract law breach, understand how to avoid it, and what breach of contract remedies you may have.
To simplify, the contract law is a set of rules that helps people make promises to each other. When you promise to do something for someone and they promise to do something for you in return, it’s called a contract. Now, imagine you promised to mow your neighbor’s lawn next Saturday, but when the day comes, you decide to play video games instead. That’s breaking your promise, and in the world of contracts and legal parlance, it’s called a breach of contract.
There is a breach of contract when the following are present:
The Australian Consumer Law and the common law govern laws on contracts and breach of contracts, but, it is typical that the terms of a contract are determined by the parties involved. It should be taken into consideration as well that the law has provisions to imply the terms in the contracts.
The law and case laws provide for the consequences of a breach of contract, the most immediate one is financial liability or damages. Also, in trust-centric industries like business or professional services, repeated breaches can damage prospects due to tarnished reputations. Legal disputes may ensue as well, leading to costly litigation, emotional strain, and financial burdens for both parties.
To understand the breach of contract better, I will lay down case laws in the next section of this article to see how contract law, or more specifically the breach of contract is applied in actuality.
At the time of entering into the contract, Ryan was drinking heavily and suffering from a prolonged and excessive episode of alcoholism. Blomley was aware of Ryan’s condition but still proceeded with the transaction. Ryan breached his obligations under the contract. Blomley took Ryan to court and sought specific performance of the contract (a court order directing Ryan to fulfill his obligations under the contract).
The court found that Ryan could not contract at the time of entering the agreement due to his being significantly affected by alcohol. The court expressed that Blomley was aware of Ryan’s condition and sought to benefit from it. Due to these reasons, it was found that there was no contract entered into, and Ryan was not required to fulfill his obligations under the contract.
As mentioned above, one of the elements of a breach of contract is to have a valid contract, whereas in this case, there is no valid contract because of complete soundness of mind to contract.
The case involved Bancks, the creator of the ‘Us Fellers’ comic strip, who contracted with a newspaper company to publish his comic on the front page of its comic section every Sunday. Bancks alleged that the company repeatedly breached this obligation, leading him to terminate the contract.
The court held that the obligation to present Bancks’ comic on the front page of the newspaper’s comic section was a condition of the contract. The company’s repeated breaches of this condition justified Bancks’ decision to terminate the contract. The principle underlying the ruling is that breaches of essential terms of a contract, termed ‘conditions,’ allowed the aggrieved party to terminate the contract without needing to prove the other party’s refusal to be bound by the contract.
Where a breach of contract has occurred, the parties can seek remedy using the following:
You can make defenses to breach of contract with the following:
If the parties cannot reach an agreement on how to proceed after a breach of contract, they may need to resort to court intervention. Not all available options may be suitable given the specific circumstances of the breach, as every breach may have a different course of legal action, hence you will need a lawyer for breach of contract.
As you may have realized by now, the law on contracts and breach thereof is a complex puzzle. The only person fully equipped to navigate these intricacies is a breach of contract lawyer.
A contract lawyer will review all your contracts carefully. They know consumer law well. Their goal is to protect your rights and achieve the best possible outcome within the law.
Breaking a contract can lead to financial loss, harm to reputation, and legal battles. Knowing the ways to resolve and defend against these issues is crucial.
Hiring a contract lawyer can be costly. However, not having one could lead to even higher expenses in the future. Considering the potential long-term costs of not having a contract lawyer is important. Investing in legal assistance now could save you money in the long run.
