What remedies are available for breach of contract?

A contract is only as good as its enforceability. When a supplier key client, or partner fails to hold up their end of the bargain, you need to know your rights.

1. Damages (Money)

The most common remedy. The goal is to compensate you, not punish the other side.

• Expectation Damages: Money to put you in the position you would have been in had the contract been performed (e.g., lost profits).
• Reliance Damages: Money to reimburse you for wasted expenses incurred because you relied on the contract.

2. Termination

You can only terminate (tear up) the contract if the breach is “material” or “fundamental.”

• Warning: If you terminate wrongfully (e.g., over a minor issue), you could be sued for “repudiation.” Always get legal advice before terminating.

3. Specific Performance

In rare cases (usually involving land or unique items), the Court can order the other party to actually perform their obligations (e.g., forcing them to transfer the title of the land).

4. Injunctions

A Court order stopping someone from doing something (e.g., stopping a former employee from stealing your clients in breach of a restraint of trade clause).

Related Topics

• Dispute resolution
• Partnership disputes
• Commercial Law Practice Area

Immediate Action

If a contract is breached, time is of the essence. You must take steps to “mitigate” (minimise) your loss, or the court may reduce your damages.

Contract breach? Contact us immediately. Call (07) 5532 8777.