A breach in an agreement between two parties leads to sending a legal notice for breach of contract to the other demanding compensation for the loss suffered.
A breach of contract implies failure in performance. This can occur on the whole or in a specific responsibility. In both cases, a legal notice for specific performance of a contract can be sent indicating the loss caused.
To draft legal notice for breach of contract, you need a good lawyer. Someone who knows everything about the legal notice format for breach of contract.
Although you can find sample legal notice for breach of contract here, still the right way is to take legal advice from a lawyer.
When does a breach of contract happen?
A breach of contract causes a loss to the aggrieved party and occurs when:
one party does not perform their part in an agreement
interferes with the performance of other parties
a party to a contract does not comply with the clauses of the contract
expresses a desire not to continue with the contract
does not maintain the desired quality of work
To make sure that your notice is properly drafted consult a good contract law knowing lawyer, who is skilled to handle such cases.
Consult: Expert Contract Law Lawyer in India
Table of Contents:
What is a Legal Notice for Breach of Contract?
Legal notice of a breach of contract is a notification by one party to another party to a contract informing them that they have breached the contract by not performing their part of a contract.
In such a scenario, it becomes necessary for one party to serve a legal Notice to the other party. It informs in detail how they have failed to meet the terms of the Contract.
This is the most primary step in resolving contractual disputes.
A legal notice for breach of Contract should be strict to any terms in the contract that discuss the requirements for notice of breach of contract.
This notice also discusses the actions that you need to take in either rectifying the problem or terminating the contract. This notice also deals with the compensation to be paid for the incurred damages.
Legal Notices are clear and specific in their language. It clearly directs the action to follow in a specific time frame, within which problems are solved.
Whereas other notices are more general in nature which primarily acts as an invitation to the breaching party to discuss the problems arose due to the breach of Contract and its possible solutions.
Essential Points to include in a Legal Notice of Breach of Contract
Before sending a legal notice for breach of Contract, it must include the following points:
Name, description, and place of residence/office of the breaching Party
The legal notice Format for breach of Contract must contain the correct and proper name, description and address of the breaching party
The date of receipt of the notice by the breaching party.
One of the most important purposes of this notice is to keep an official record of the date. It's the date on which the breaching party was officially made and informed of the breach of contract committed by them. This date of communication becomes an important point if the dispute ultimately moves to court.
Mention the clause of Notice described in the contract.
Almost all the contracts signed between parties have a notice clause that describes how the legal notice Format for breach of Contract is to be conveyed to the breaching party.
It consists of the contact information of all the parties and the method of communication of the legal notice Format for breach of Contract - whether by Registered Post with A/d or Speed Post, email or fax.
If the procedures described in the Notice clause of the contract is not followed properly then it will not be treated as a valid legal notice format for breach of contract and will become beneficial to the breaching party. One should clearly outline the breach in detail.
The legal notice format for breach of contract must be conclusive about the cause of action and the relief sought.
The breach committed by the breaching party can of the following nature:
- when the breaching party failed to perform their duties in accordance with the contract. Example: In a contract of sale of immovable property, if the Vendor hasn’t handed over the property as was promised in the contract.
- When the breaching party clearly refuses to perform its obligations under the contract in the future.
- When the breaching party makes it impossible for the other party to perform its obligations according to the contract.
In a legal notice, it's important to identify the clauses of the contract that have been breached. If there is a breach of more than one clause, then all of them need to be included in the notice. Irrespective of the type of breach which has occurred or the reason of the breach.
Give Importance to Material Breach
Legal notice for breach of Contract can be sent for any type of breach but to get proper relief in this case, importance should be given on material breach.
Material breach means the breach which is destroying the whole purpose of the contract. Thus, inflicting huge material loss to the non-breaching party.
After serving the legal notice for breach of Contract the party can sue the breaching party before the appropriate Court of law under specific performance of a contract and also claim for damages.
Description of the action to take by the breaching party to cure the breach of contract.
Generally, a legal notice for breach of Contract is a remedy called for before taking the matter to court and as such to make this notice effective the detailed course of actions needs to be directed to the breaching party to rectify their breach in the contract.
Some other points in legal notice Format for breach of Contract which needs to be followed:
1) All previous communications regarding the breach of contract.
2) To offer the breaching party with a reasonable time of 15 to 30 days to settle the matter.
- Either through negotiation and
- by performing the desired action of the non-breaching party.
3) A lawyer should duly sign the legal notice.
4) The lawyer will retain a copy of the said notice.
Style of the breach of contract notice
Draft a legal notice format for breach of contract.
Send notice in either English or in any regional language.
Avoid any type of ambiguity in the language.
The tone of the Notice should be crisp and clear.
It should address the breaching party with respect.
How to Reply to a Legal Notice for Breach of Contract?
If the breaching party receives the legal notice for breach of Contract from the injured party then they must clear their standby replying the said legal Notice where either they will admit their breach and rectify it or deny it and refuse to take any action in that points.
If the breaching party denies compensating or act desirably, then the aggrieved party can directly sue to protect their interests.
When should you send Legal notice to an employee for breach of Contract?
This happens when a company or employer provides with an offer letter or letter of appointment to an employee.
The said letter consists of the terms and clauses of the employment. The Offer Letter or Letter of appointment is signed by both the employer and employee.
So, if any employee breaches any terms and conditions mentioned in this, then primarily oral or written warnings can be given to rectify the breach.
Also, if that warning doesn’t produce any result then legal notice to an employee for breach of contract needs to be sent by the Employer.