Breach of Contract Notice

In the world of business and elsewhere, promises are made in plenty, but alas, not all are kept. The protected ones are enforced while the rest are forgotten. What is that step which protects a promise to do an act? The answer lies in documentation- legally valid documentation to be precise. One of the basic components of any contract is the remedies for its breach. In most cases, the aggrieved party sues the breaching party for damages, compensation and also specific performance according to the gravity of the matter. For the uninitiated, specific performance is an order given by a court to the breaching party to perform their part of the promise. Non-compliance with such order can lead to heavy penalties.

The very legal definition of a contract is ‘an agreement enforceable by Law’. This highlights the importance of creating legally valid agreements, or contracts, in other words.

What Is Breach Of Contract Notice?

A notice for breach of contract is a notice sent by the aggrieved party in case the other party to the contract fails to keep up with their part of the contract. The notice is usually the first step before initiating legal proceedings by the party unhappy with the non-performance by the other party.

The breach of contract notice is ideally printed on the letterhead of the issuing party and signed by the authorised signatory. There is no hard and fast rules regarding the medium. A breach of contract notice may be given through any medium as accepted in the contract. The notice describes the breach and asks the party to correct the same. It also instructs the other party about when the remedy should be made available and the future actions on non-compliance.

What To Include In A Notice Of Breach Of Contract?

A breach of contract notice can include the following details based on the nature of the contract:

Title

The title of the letter should ideally mention the words ‘Breach of Contract Notice’ of ‘Notice for Breach of Contract’. It is for immediate attention and prompt action. Even the cover of the letter can contain the title.

Date

The date of sending the letter is important since the contract would have specified that notices would have to be sent within such time as mentioned in it. Therefore, it is the duty of the sender to make the date clear in order to ensure validity.

Registered Address Of The Recipient

Delivery address of the notice is of importance since there may be a prior agreement in the contract as to future communications and notices. If the notice is not sent in the address agreed by both parties, it may lose out on enforcing performance in time.

Name Of The Responsible Person

The Notice for breach of contract should be clearly addressed to the person who is answerable since the purpose of the notice would be defeated if it is sent to any other individual in the organisation who may not be responsible for the contract. It would also be prudent to mention the names or designations of the persons answerable in case of any notice by the other party.

Mention Of The Breach Along With The Title Of The Breached Contract

The notice can be opened by pointing out to the other party that they are in breach of their contract whose title is given.

For example:

• “Please note that you are in breach of our contract titled ‘Software Development and Maintenance’’

• “This is to inform you that our contract titled ‘Manpower Supply’ has been breached from your side”

Details Of The Breach

The next step would be to mention each part of the breach in detail and in subsections as required. The reasons may be anything ranging from not performing of a promised act or performing of an act contrary to the contract. The acts may be anything related to the delivery of goods, making of payments, following of safety standards, packaging in a particular way, keeping up of time limits, usage of particular products of defined standards, and so on.

For example:

Service Deadline
Description: You have failed to perform maintenance service of the machineries supplied within the agreed period of August 2016.

Payment
Description: Your cheque dated 01/09/2016 has been dishonoured and the payment deadline has been missed due to non-response from your side.

Time Limit To Make Good The Breach

After describing the breach in detail, the expectation of the sender as to when the breach should be corrected needs to be mentioned.

For instance-

• You are requested to perform the maintenance service within 14 days from the receipt of this notice.

• You are requested to make the payment of Rs 80,000 within 07 days from the receipt of this notice.

Action If Breach Is Not Remedied

The intended course of action of the aggrieved party can be made explicit to serve as a warning against not remedying the breach.

For example-

• Failing which, legal action will be initiated under the Indian Contract Act and any applicable law.

• In the event of the payment not being made, appropriate lawsuit shall lie under the Negotiable Instruments Act and other applicable laws.

Details Of Sender

The person who sent the notice can be suitably identified so that the breaching party may contact for any clarification.

Further, it is important to keep all documents pertaining to the breach ready before sending a notice of breach, including the copy of the original contract. This provides a better legal standing against the other party in getting the remedy. The option of sending a legal notice through a registered legal practitioner additionally can be regarded as a good move as this can result in prompt action from the breaching party so as to avoid litigation.

LegalDesk.com’s Assistance In Breach Of Contract Notice

LegalDesk.com has a tradition of going the extra mile and personalising its documentation service to suit your individual needs. Your satisfaction is what matters to us the most. Our services are those which keeps your convenience in mind. All it takes is some clicks in order to create a valid legal document online at LegalDesk.com. We not only have a panel of legal experts who love to draft fine documents to address your needs, but also an entire team that ensures printing and delivery if required. So, if you have suffered from a breach of contract from any party, get in touch with us. We will ensure that your notice is sent in style.