Contract litigation occurs when there is a breach of contract or perceived breach of contract by one party and the other party decides to sue them. In the law of contract, litigation must be commenced within six years from the date when the cause of action accrued. Many contracts however, stipulate a shorter limitation period than that in the Limitation Act 1980 and so any contract should be carefully checked before the commencement of proceedings. In the event that the limitation period has expired, either because six years have passed or because the contractual limitation period has passed, it may still be possible to bring a case, but it is likely that the defendant will attempt to have the case struck out.
When a problem arises with a contract, litigation should not necessarily be the first step. Negotiation and alternative dispute resolution must be considered by the claimant and defendant, as litigation is notoriously expensive and damages will be reduced by a court if no attempt has been made to settle the claim out of court. If litigation does commence, there are a number of remedies for breach of contract that the claimant may wish to pursue. The most common remedy is damages, the purpose being to put the claimant in the financial position they would be in had the contract been properly performed. The test for damages in contract is that they must not be too remote - this means you must consider if the parties would have contemplated that the loss suffered would be a probable result of the breach.
If you would like to obtain legal advice on contract litigation, Contact Law can put you in touch with a local specialist contract litigation solicitor free of charge. So, if you have any questions or would like our help in finding local contract litigation solicitors please call us on 0800 1777 162 or complete the web-form above.
- Last Updated on 02/03/2010