Breach of contract

1. The existence of a contract
The first hurdle in proving breach of contract is to show that a legally binding agreement existed in the first place. It is at this point that contracts formed verbally tend to become a problem when arguing breach of contract. Having no written evidence of the agreement makes it tricky to show conclusively that one existed. In order to protect your rights and interests, it is always important to ensure that, where practicable, any contract you enter into is recorded in writing: letters and emails can be useful evidence when proving the existence of a contract.

2. That the contract was breached
Once you have shown that a legally binding contract existed, the next obstacle is to prove that an agreement has subsequently been broken and the party in breach of the agreement failed to fulfill their obligations satisfactorily. In order to do this, there must be clear evidence of what the other parties’ obligations were under the agreement, for example, the Terms and Conditions, and proof that those obligations were not performed or not performed well.

3. Loss was suffered was a direct consequence of the breach of contract
The third and final hurdle in proving breach of contract is probably the most significant and yet the most onerous to overcome. As the injured party, you must show that, as a result of the breach, you suffered a loss and deserve to be compensated (awarded ‘damages’) for that loss. Any loss you have suffered must have been a direct consequence of the breach of contract.