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Damages are usually awarded to an injured party for losses suffered as a result of the defaulting party's actions or non-actions. The purpose of an award of damages for breach of contract is to put the injured party in the position it would have been in had the contract been performed.
What is a Letter Before Action? A Letter Before Action is the last step in your attempts to resolve a contractual dispute informally and the first step towards formal dispute resolution. It sets out your claim and provides the party in breach with a firm timeframe to respond and remedy the situation.
The relevant criteria are: There is a legally binding contract. ... The other party has failed to perform their duties under the contract. ... You have suffered loss as a result of the breach. ... The breach occurred within the last 6 years. ... Collating and preserving evidence. ... Reserving your rights. ... Taking legal advice.
A breach of contract notice needs to explain the nature of the breach and clearly state what action is required. This can usually be done with a one-page letter. Explaining the nature of the breach involves stating what requirement of the contract has not been fulfilled.
In each scenario, you're clearly the victim of an obviously broken contract, but the tricky part is determining what type if contract breach occurred and what remedies are legally available to you. Generally speaking, there are four types of contract breaches: anticipatory, actual, minor and material.
4 Elements of a Breach of Contract Claim (and more) The existence of a contract; Performance by the plaintiff or some justification for nonperformance; Failure to perform the contract by the defendant; and, Resulting damages to the plaintiff.