Guide · Contracts

Breach of contract

What counts as breach and the practical questions of causation, loss, remedy and evidence.

A breach occurs when a party fails to perform a contractual obligation; the remedy depends on what was breached and what loss followed.

A breach can be non-delivery, late performance, supplying the wrong thing, failing to meet an agreed standard, non-payment or another failure to perform. The fact of breach is only the first part of a claim: causation, loss, mitigation and the appropriate remedy also matter.

Consumer statutes often supply specific remedies, so a consumer should check those before jumping straight to a general damages claim.

Key points

  • Identify the exact contractual obligation.
  • Prove the act or omission that departed from it.
  • Link the breach to the loss or remedy claimed.
  • Take reasonable steps to avoid unnecessarily increasing loss.

Not every broken promise gives the same remedy

Some terms are so important that breach may justify termination; others lead to repair, repeat performance, price reduction or damages while the contract continues. Consumer Rights Act remedies can provide a structured route for goods, services and digital content.

Causation and loss

A claimant generally needs to show that the breach caused the loss claimed. Remote, speculative or unrelated losses may not be recoverable. Keep invoices and evidence showing why the expense occurred.

Mitigation

You are not expected to make unreasonable sacrifices, but you should not allow avoidable loss to accumulate merely to increase a claim. Reasonable replacement purchases or steps to limit damage should be documented.

In practice

  • Quote the term or statutory obligation said to be breached.
  • Separate direct loss from distress/inconvenience or other heads of redress.
  • Explain the causal chain in simple chronological terms.

Evidence worth keeping

Contract and incorporated terms
Evidence of the promise or obligation
Evidence showing what actually happened
Notice of breach or complaint
Losses and costs caused by the breach
Steps taken to reduce further loss

Use the specialist consumer remedy first where one exists.

For faulty goods, poor services or defective digital content, the Consumer Rights Act has specific remedies and sequences. Those routes can be clearer than pleading a general damages claim for breach. General contract principles remain relevant, but do not bypass a statutory consumer remedy without understanding the consequences.

Prove causation and loss separately from proving breach.

A business can be in breach without being liable for every amount the consumer later claims. Show how each financial loss was caused by the breach, whether it was reasonably foreseeable and whether reasonable steps were taken to avoid unnecessary additional loss. Keep invoices, replacement-cost evidence and a clear calculation.

Useful wording.

“The obligation was [term/statutory term]. You breached it by [event]. I am seeking [remedy] because [legal/remedial basis], calculated as follows: [brief calculation]. Please address those elements separately.”

Not every breach gives a right to end the contract.

Contract law distinguishes between breaches that justify termination and breaches for which the main remedy is damages or another response. The label used by a business is not decisive. Ask whether the term was fundamental, whether the contract gives an express termination right, and whether consumer legislation supplies a specific remedy sequence.

Ending a contract without a valid basis can itself create a dispute, so avoid jumping from “there has been a breach” to “I owe nothing further”.

A breach is not simply “they treated me badly”. Identify the obligation that was broken.

Start with the term, promise or statutory term that you say applied. Then identify the conduct that departed from it. For a consumer purchase, the Consumer Rights Act can imply terms about goods, services and digital content even if the written contract says little. For other agreements, the relevant obligation may be express, implied by law or inferred from the agreement and circumstances.

QuestionExample
What was the obligation?Deliver by 12 June; provide the advertised service; pay £500 by the due date.
What happened instead?No delivery; materially different service; non-payment.
Was the breach material to the remedy sought?A minor delay does not necessarily justify terminating the whole contract.
What loss/remedy follows?Refund, damages, price reduction, performance or termination depending on the legal route.