Common Examples of Contract Breaches

Rose Lawyers on 16 December 2015

Involved in a breach of contract? Here are some common examples and advice from lawyers

We all want to trust the people that we do business with, and most of the time we can. Nobody expects to have to deal with a breach of contract, but what happens when someone doesn't meet their obligations to you? What happens if circumstances outside your control prevent you from meeting your obligations?

There are a variety of options for resolving a breach of contract, most breaches can be solved with negotiation and mediation but sometimes a matter must proceed to litigation in order to solve the dispute. Regardless of the dispute resolution avenue, a solution can almost always be found.

At Rose Lawyers, our lawyers work to ensure a fair outcome for you, no matter which side of the dispute you are on. With over 35 years of expertise, we can help you find a solution.

Talk to one of our lawyers today to discuss your breach of contract situation and your options, call 03 9878 5222 to schedule a free phone consultation with Rose Lawyers.

Common Breach of Contract Examples

Breach of Contract Scenario 1

"My wife and I decided we wanted a brick outdoor wood fire oven. We did some shopping around and found a company that did designs we really liked for reasonable prices. We paid a deposit and a guy came out and built it for us. It was beautiful! We paid the balance, and the first chance we had, we organised a huge family dinner to test it out and show it off. I nearly died when I went to use it and realised that the bricks were just stacked on top of one another – there was almost no mortar and the oven looked like it was falling over. The chimney wasn’t even connected and when I had a better look, I realised it was plastic. What do I do?"

Best Option: VCAT

  • Dispute resolution through VCAT (The Victorian Civil and Administrative Tribunal) Can be done without Lawyers as it is known as a “self help option”.
  • However Lawyers can be generally be used.
  • The Application can be downloaded from the VCAT website.

Resolution:

"I spoke to a Lawyer who recommended that we go to VCAT because we really don’t have the funds to go to Court and we only paid $5,000 for the oven which would quickly be overshadowed by legal fees.

I made the application to VCAT, there was a hearing before a member and the member found in our favour – the company has now replaced the oven with a new, working one in proper condition."

 couple outdoor backyard

Breach of Contract Scenario 2

"I own a small independent car dealership. Recently I sold a car and the purchaser said that they didn’t have a credit card or debit card. They looked honest and I suggested that they organise a bank transfer or use internet banking, but they had lots of excuses why they couldn’t do it. I accepted a cheque as payment. Now I know that was a silly thing to do. The cheque bounced and the purchaser won’t respond to my calls or emails."

Best Option: Litigation

  1. A letter of demand will be sent to the other party. Often, no further legal action is required.
  2. A complaint will be made to the Magistrates’ Court (most probably).
  3. If a defence is entered a date for the next hearing will be set.
  4. If no defence is entered you can apply for default judgement.

Resolution:

"My Lawyer sent a letter of demand to the purchaser, warning them that if they didn't pay then legal proceedings would be commenced. There was no response from the purchaser so my Lawyer filed a Complaint with the local Magistrates’ Court and arranged for it to be served on the purchaser. The purchaser contacted my lawyer and made arrangements to pay the money. Once paid, my lawyer withdrew the Complaint."

 independant car dealer

Breach of Contract Scenario 3

"My business sells office furniture to businesses. Recently a company purchased a lot of furniture for their office. We took a deposit and had it all delivered and set up for them. They still haven’t paid the account and seem to have a million excuses as to why they can’t do it."

Option: Litigation

  1. A letter of demand will be sent to the other party.
  2. A complaint will be made to the Magistrates’ Court (most probably).
  3. If a defence is entered a date for the next hearing will be set.
  4. If no defence is entered you can apply for default judgement.
  5. You can also apply for warrant to send sheriff to seize goods to cover the debt amount.
  6. OR if over the prescribed amount, make an application for liquidation of the company
  7. OR if the company owns real property, make an application for an order that a property be sold to cover the debt amount

Resolution:

"My lawyer wrote a letter of complaint to the company, warning them that we were going to commence legal proceeding if they did not pay the account. My lawyer filed a complaint with the Magistrates' Court and the purchasing company entered a defence. The magistrate found in our favour and ordered the purchasing company to pay the account balance."

furniture store owner

Rose Lawyers can help you with any breach of contract issue. We have over 35 years of experience in dealing with breaches of contract from both sides of the dispute. This expertise means you can be sure that we will secure the best possible outcome for you and your circumstances.

Talk to a lawyer today, call Rose Lawyers on 03 9878 5222 to schedule your free phone consultation.