How Does Enforcing A Breach Of Contract Work?

There are two options available to resolve a breach of contract dispute. Firstly, if it can be resolved by negotiation, through alternative dispute resolution, such as arbitration or mediation. This is a cheaper and quicker option.

If the dispute cannot be resolved by negotiated settlement, the second alternative is to take legal action through the courts. This is a costly and time-consuming option. Broadly, these steps are to be followed:

• Letter before action – the claimant is required to send a letter before action to the defaulting party, the defendant, before starting court proceedings. The letter needs to set out the breach of contract, the remedies being sought, for example, damages or specific performance, and a deadline for the defendant to respond.
• Choose a court venue – proceedings are commenced in the:
  • Small Claims Court for claims up to £10,000;
  • County Court for claims up to £100,000;
  •  High Court for claims above £100,000.
• Setting up the claim – fill out the relevant court forms, which can be done online through the government's Money Claim Online (MCOL) system, and file at court with the required fee.
• Serving the claim – once filed at court, the claim must be served on the defendant. A process server or the court's service can be used.
• Defendant’s reply – the defendant has the right to respond to the claim. They may admit the breach, deny it, or file a counterclaim.
• Managing progress of the claim – the court will manage the progress of the claim, including setting deadlines for the disclosure of evidence, witness statements, and expert reports.
• Trial – the case will proceed to trial at the court’s direction, where both parties will present their evidence and arguments to the court.
• Judgment and enforcement – the court will issue judgment on the evidence and arguments presented. If the claimant succeeds, the court will order remedies such as damages, specific performance, or other relief and costs. If the defendant does not comply with the judgment, the claimant may take further steps to enforce the judgment, for example, seizing assets or obtaining court orders for payment.

More information about settling a dispute without going to court is available in the By Lawyers Contract Dispute guide.