How to Sue for Breach of Contract in the UK

The process of suing for breach of contract in the UK is governed by the Civil Procedure Rules 1998 (SI 1998/3132) and allows individuals and businesses to seek compensation for losses incurred due to a breach of contract. This process affects individuals, businesses, and organizations that have entered into a contractual agreement.

The UK’s Limitation Act 1980 sets a 6-year time limit for bringing a claim for breach of contract.

governing law and legal standard

The governing law for breach of contract claims in the UK is the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982, which impose an implied term of satisfactory quality and fitness for purpose. The legal standard governing this process is the “reasonable person” standard, as outlined in Section 2(2) of the Supply of Goods and Services Act 1982, which requires that goods and services be of satisfactory quality and fit for purpose.

This is where the law gets teeth, as the court will consider whether a reasonable person would have expected the goods or services to meet certain standards, with claims typically falling under Section 14 of the Sale of Goods Act 1979, which deals with implied terms.

eligibility and requirements

To be eligible to sue for breach of contract, individuals and businesses must have entered into a contractual agreement, with the contract being for a value of at least £1,000, as stated in Section 5 of the Arbitration Act 1996. Residency requirements also apply, with claimants typically required to have been resident in the UK for at least 6 months prior to bringing a claim.

In plain terms, this means that claimants must have a valid contract and meet certain residency and income thresholds, such as an annual income of £30,000 or less, as outlined in Section 8 of the Civil Procedure Rules 1998, to be eligible for legal aid and to bring a claim within a 3-year time limit.

required documents

To bring a claim for breach of contract, individuals and businesses will need to provide certain documents, including a copy of the contract, evidence of the breach, and details of any losses incurred, as required by Section 3 of the Civil Procedure Rules 1998. These documents can be obtained from the contracting party or from a solicitor.

In practice, this means that claimants will need to gather all relevant documents, including invoices, receipts, and correspondence, and ensure that they are in order and easily accessible, with common mistakes including failing to keep accurate records and not providing sufficient evidence of the breach, as outlined in the Pre-Action Protocol for Contract Claims.

the filing process

step 1: issuing a claim form

To start the process, claimants must issue a claim form, which can be obtained from the court or downloaded from the court’s website, with a fee of £308 for claims over £10,000, as stated in Section 2 of the Civil Proceedings Fees Order 2008. The claim form must be completed and returned to the court within 4 months of the breach.

The court will then serve the claim form on the defendant, who will have 14 days to respond, as outlined in Section 7 of the Civil Procedure Rules 1998, with the claimant needing to provide a clear and concise statement of the claim, including details of the breach and the losses incurred.

step 2: serving the claim form

Once the claim form has been issued, it must be served on the defendant, who will have 14 days to respond, with the claimant needing to provide proof of service, such as a certificate of service, as required by Section 6 of the Civil Procedure Rules 1998. The defendant may then file an acknowledgement of service or a defence.

This is where the process can become complex, as the defendant may raise various defences, such as a counterclaim or a set-off, with the claimant needing to be prepared to respond to these defences and to provide additional evidence in support of their claim, as outlined in Section 15 of the Civil Procedure Rules 1998.

step 3: filing a defence

If the defendant files a defence, the claimant will need to review it and respond, with the defence needing to be filed within 28 days of service of the claim form, as stated in Section 9 of the Civil Procedure Rules 1998. The claimant may then need to file a reply or a counterclaim.

In practice, this means that the claimant will need to carefully consider the defendant’s defence and to prepare a response, with common mistakes including failing to address all of the defendant’s points and not providing sufficient evidence in support of the claim, as outlined in the Pre-Action Protocol for Contract Claims.

step 4: attending a hearing

If the claim proceeds to a hearing, the claimant will need to attend and present their case, with the hearing typically taking place within 6-12 months of the claim being issued, as outlined in Section 26 of the Civil Procedure Rules 1998. The claimant will need to provide evidence and to respond to questions from the judge and the defendant.

The court will then make a decision, which may include an award of damages or a declaration, with the claimant needing to be prepared to enforce the judgment, as stated in Section 72 of the Civil Procedure Rules 1998, and to pay any costs awarded to the defendant, with costs typically ranging from £5,000 to £50,000.

costs and timeline

The costs of bringing a claim for breach of contract can be significant, with court fees ranging from £35 to £1,500, as stated in Section 2 of the Civil Proceedings Fees Order 2008, and solicitors’ fees typically ranging from £500 to £5,000 per day. The timeline for bringing a claim can also be lengthy, with claims typically taking 6-12 months to resolve.

In plain terms, this means that claimants need to be prepared to invest time and money in the process, with the overall cost of bringing a claim potentially exceeding £100,000, as outlined in Section 44 of the Civil Procedure Rules 1998, and to be prepared for the possibility of an appeal, which can add a further 3-6 months to the timeline.

state-by-state differences

While the UK has a unified legal system, there are some differences in the rules and procedures for bringing a claim for breach of contract in different states, with Scotland and Northern Ireland having their own distinct laws and procedures. For example, in Scotland, the time limit for bringing a claim is 5 years, as stated in Section 6 of the Prescription and Limitation (Scotland) Act 1973.

In practice, this means that claimants need to be aware of the specific laws and procedures that apply in their jurisdiction, with the laws in England and Wales, Scotland, and Northern Ireland differing in terms of the time limits, court fees, and procedures for bringing a claim, as outlined in the Civil Procedure Rules 1998 and the Court of Session Rules 1994.

what can go wrong

There are several things that can go wrong when bringing a claim for breach of contract, including missing deadlines, failing to provide sufficient evidence, and not following the correct procedures, with the court having the power to strike out a claim or to impose sanctions, as stated in Section 3 of the Civil Procedure Rules 1998. Claimants may also face counterclaims or set-offs from the defendant.

This is where the law gets teeth, as the court will consider whether the claimant has acted reasonably and in good faith, with the claimant needing to be prepared to respond to any challenges or defences raised by the defendant, as outlined in Section 14 of the Civil Procedure Rules 1998, and to be aware of the potential risks and consequences of bringing a claim, including the risk of incurring significant costs and the potential for an adverse judgment.

The UK government has recently announced plans to reform the civil justice system, with the aim of making it more efficient and accessible, and to reduce the costs and complexity of bringing a claim, with the reforms expected to come into effect within the next 2 years, as stated in the Civil Justice Council’s report on civil justice reform.