Breach of Contract Claim

A contract is a legally binding agreement. When one party fails to do what they promised — whether that means delivering goods, completing work, or paying on time — it is a breach of contract. Under English and Welsh law, you have the right to claim compensation for the losses caused by the breach.

You do not need a solicitor to bring a breach of contract claim. Claims worth up to £10,000 are handled on the small claims track of the county court, where hearings are informal and costs are kept low.

What Is a Breach of Contract?

A breach of contract occurs when one party to a valid contract fails to perform their obligations under it — without a lawful excuse. The breach can take many forms:

• Non-performance — the other party simply fails to do what was agreed, such as a tradesperson who takes payment but never starts the work
• Late delivery or completion — goods arrive weeks after the agreed date, or a builder finishes months behind schedule
• Substandard work or defective goods — a decorator paints the wrong rooms, a supplier delivers goods that do not match the description
• Non-payment — a customer or client refuses to pay for goods or services that were properly delivered
• Failure to follow agreed terms — a landlord enters the property without notice in breach of the tenancy agreement, or a supplier changes the price without agreement

Types of Breach

Material Breach

A material breach is a substantial failure that goes to the heart of the contract. It entitles the innocent party to terminate the contract and claim damages. For example, a builder who abandons a project halfway through has committed a material breach.

Minor Breach

A minor breach (sometimes called a partial breach) is a failure that does not destroy the purpose of the contract. The contract remains in force, but you can claim damages for the specific loss caused. For example, a supplier delivers goods one day late — you can claim any costs caused by the delay, but you cannot reject the goods entirely.

Anticipatory Breach

An anticipatory breach occurs when one party makes it clear — before the performance is due — that they will not fulfil their obligations. For example, a contractor emails to say they are not going to start work on the agreed date. You can treat this as a breach immediately and sue for damages without waiting for the performance date to pass.

Fundamental Breach

A fundamental breach is so severe that it deprives the innocent party of substantially the entire benefit of the contract. This always entitles termination. For example, a company delivers a completely different product from what was ordered.

What You Can Claim

The aim of damages for breach of contract is to put you in the position you would have been in if the contract had been performed properly. This is known as the expectation measure. You can claim:

• Direct losses — the immediate financial loss caused by the breach, such as the cost of hiring someone else to complete the work, or the difference between what you paid and what you received
• Consequential losses — additional losses that flow naturally from the breach and were reasonably foreseeable at the time the contract was made (the rule in Hadley v Baxendale), such as lost profits or wasted expenditure
• Statutory interest on debts — under the Late Payment of Commercial Debts (Interest) Act 1998, businesses can claim 8% above the Bank of England base rate on overdue invoices, plus a fixed sum of £40 to £100 depending on the debt size
• Court fees and reasonable expenses — filing fees are added to the judgment if you win

Limitation Periods

Under the Limitation Act 1980, you must bring a breach of contract claim within a fixed time period. If you miss the deadline, the court will not hear your claim:

• Simple contracts — 6 years from the date of the breach (section 5). This covers most everyday contracts, whether written, verbal, or implied
• Contracts executed as deeds — 12 years from the date of the breach (section 8). Deeds are formally executed documents, often used for property transactions and construction contracts

How to Make a Breach of Contract Claim

Step 1: Gather Your Evidence

Before taking any formal action, collect all the evidence that supports your claim:

• The contract itself — written agreement, email chain, text messages, or a record of what was agreed verbally
• Proof of payment — bank statements, invoices, receipts
• Evidence of the breach — photographs of defective work, screenshots of missed deadlines, correspondence showing non-performance
• Evidence of your losses — quotes for remedial work, receipts for replacement goods, records of lost income

Step 2: Send a Letter Before Action

Before filing a court claim, you must send a formal letter before action (also called a letter before claim). This is required under the Civil Procedure Rules Pre-Action Protocol. The letter should set out:

• Who you are and the contract in question
• What the breach was
• How much you are claiming and how that figure is calculated
• A deadline of 14 days to respond or settle
• A statement that you will issue court proceedings if they do not comply

Many disputes settle at this stage. The other party realises you are serious, and paying what they owe is cheaper than defending a court claim.

Step 3: File an N1 Claim Form

If the letter before action does not resolve things, file a claim using the N1 form through Money Claims Online (MCOL) or at your local county court. You will need to pay a court fee (see below) and set out the facts of your claim clearly — what the contract was, how it was breached, and what losses you suffered.

Step 4: The Court Process

Once filed, the defendant has 14 days to acknowledge the claim and 28 days to file a defence. If they do not respond, you can apply for judgment in default. If they defend, the court will allocate the case to the small claims track (for claims up to £10,000) and schedule a hearing. Small claims hearings are informal — no wigs, no barristers, just you, the other side, and a district judge.

Do You Need a Written Contract?

No. Verbal contracts are legally binding and enforceable in England and Wales. If you agreed something by phone, in person, or even by a handshake, and the other party has failed to honour that agreement, you can sue for breach of contract.

The challenge with verbal contracts is proving the terms. Courts will look at the conduct of the parties, any written communications (texts, emails, WhatsApp messages), and what a reasonable person would have understood the agreement to be.

Additionally, the Supply of Goods and Services Act 1982 implies certain terms into contracts for services — including that services will be carried out with reasonable care and skill, within a reasonable time, and at a reasonable price (if no price was agreed). These implied terms apply even if nothing was put in writing.

Court Fees

The fee you pay to issue a breach of contract claim depends on how much you are claiming. These fees are set by the Ministry of Justice and apply to claims filed online through Money Claims Online:

If you are on a low income or receiving certain benefits, you may be eligible for fee remission (Help with Fees), which reduces or waives the court fee entirely.

Common Defences to a Breach of Contract Claim

Understanding what the other side might argue helps you prepare a stronger claim. Common defences include:

• No contract existed — the defendant argues there was no binding agreement, or that essential terms were never agreed
• Frustration — the contract became impossible to perform due to an unforeseen event outside either party's control (e.g. a fire destroying the subject matter). This is a narrow defence and rarely succeeds
• Failure to mitigate — the defendant accepts they breached the contract but argues you failed to take reasonable steps to minimise your losses
• Contributory conduct — the defendant claims your own actions contributed to the breach or the losses, for example by providing incorrect specifications
• Limitation expired — if more than 6 years (or 12 for deeds) have passed since the breach, the claim is time-barred
• Exclusion clause — the contract contains a clause limiting or excluding liability. Note that under the Consumer Rights Act 2015 and the Unfair Contract Terms Act 1977, many exclusion clauses in consumer contracts are unenforceable