A contract breach is a violation of any of the terms or conditions of a contract by one or more parties to the agreement. It can be either a minor or a primary offence, and the consequences of a breach can vary depending on the type of contract and the type of breach.
No matter the severity, a contract breach can be damaging to both parties. The innocent party may suffer financial loss, emotional distress, or even legal action. But the party who breached the contract may face legal action. Which steps can the innocent party take? Here are some ideas.
1. Ask For Compensation
Regarding contractual obligations, it’s essential to understand the consequences of breaching the agreement. When one party fails to meet the commitments outlined in the contract, the other party may be entitled to specific remedies.
One available remedy is that of damages. Damages are compensation paid by one party to the other when the contract has been breached, intended to put the innocent party in the same position they would have been in if the contract had been performed as agreed.
2. File a Lawsuit
If the breach of contract is grave, or the other party is unwilling to negotiate reasonable compensation, then a lawsuit may be the only option. When filing a lawsuit, you should include all relevant information regarding the breach of contract.
The lawsuit should include the date of the breach, the other party’s failure to fulfil the contract, and any damages you have suffered as a result. It is important to note that filing a lawsuit can be a lengthy and expensive process. Therefore, weighing the chances first is essential.
3. Seek an Injunction
The court may grant an injunction, an order from the court that requires the other party to take specific action or refrain from taking action. An injunction is most commonly used when one party is in danger of suffering irreparable harm if the other party does not follow the agreement.
Injunctions are most commonly used to prevent the other party from breaching the contract further or to prevent them from engaging in activities that would breach the agreement. As a result, the order prevents the innocent party until further notice.
4. Ask For Restraints of Trade
Restraints of trade are a type of injunction that prevents a party from engaging in certain activities that may be detrimental to the other party. These may include preventing a party from competing with the other.
It prevents disclosing confidential information or preventing from utilising a particular asset. Employees can use restraints of trade to protect the other party’s goodwill and reputation and prevent them from engaging in activities that may be detrimental to their business.
5. Terminate the Contract
If you want to terminate the contract, you must follow the terms set out in the agreement. Generally, the termination process involves giving notice to the other party, providing written information or sending a termination letter. But the process can differ, depending on the contract.
It is essential to ensure that you are following the terms of the contract and giving appropriate notice to the other party to terminate the agreement legally. Afterwards, the innocent party should legally become free from the contract.
Breach of contracts is serious and can have severe consequences for employers and employees. In Australia, employees have the right to take legal action against their employers if they believe their contract has been breached.
Employers must ensure they meet their obligations under any contract they enter into, as failure can result in legal action being taken against them. Employees must also understand their rights and seek legal advice in case of a breach.
Saines Legal offers legal assistance to employees experiencing a breach of contract. Our employment lawyers in Brisbane can help clients with the legal steps to get the justice they deserve. Speak to our workplace lawyers today by booking an appointment on our website.