Notice to Remedy Breach of Contract
This notice may be used to let a counterparty know that they have breached the contract and you expect the breach to be remedied, whether the contract requires such a notice or not.
(0 reviews)
Last updated December 20, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
There are always consequences to breaching a contract, or agreement. This notice allows you to assert your rights when the other party has breached the contract.
Can I terminate for breach?
In some instances, the contract will outline the consequences of a breach. It may outline a procedure for the breach to be remedied. Generally, this will take the form of the wronged party providing notice to the party in breach, and when the party in breach has not remedied the breach after a certain period, the wronged party will have a right to terminate. A termination right may only be available for certain kinds of breaches.
Where the contract does not provide such a procedure, the wronged party is still legally entitled to demand that the breach be remedied, generally within a reasonable amount of time. A right to terminate may exist depending on the circumstances. Depending on the nature of the contract, certain obligations may be considered essential, or conditions, and any breach of them will create an immediate right of termination under common law. Then there are clauses that courts consider warranties, which give no right to terminate upon breach, and intermediate terms, whether the right to terminate depends on the seriousness of a breach. If you are unsure what category a particular clause falls under, we recommend seeking legal advice.
Generally, a clear contractual procedure will override common law rules.
Where the contract provides for an immediate right of termination, it may be more appropriate to use the Notice to Terminate Contract.
Where the breach is signficant and you are considering legal action, the Letter of Demand (1st attempt) may be more approriate.
Am I entitled to compensation for a breach of contract?
Generally, a wronged party is entitled to be compensated for the damage caused by the other party's breach, whether or not the other party later remedies the breach. In some instances, the contract will provide for compensation, either through a lump payment prescribed for certain breaches, known as liquidated damages, or in-kind compensation, such as through a free additional order.
Parties are entitled to compensation even where the contract does not provide for it. This compensation will generally account for the financial damage incurred by the wronged party, and will be enforced by the courts according to common law. You should take great care when making such claims, for they may antagonise the other party or lead to a repudation of the contract. We recommend speaking to a lawyer if you are unsure.
The Legal Risk Score of a Notice to Remedy Breach of Contract Template
Our legal team have marked this document as medium risk considering:
- Nothing in this document is legally binding, and it does not constitute repudiation or some other form of termination.
- It can be one of multiple strategies used against the offending party.
- The requirement for the recipient to confirm receipt of the notice by a specified deadline adds a procedural obligation that, if missed, could exacerbate the situation or lead to further complications in the relationship between the parties.
Notice to Remedy Breach of Contract Checklist
Complete your free Notice to Remedy Breach of Contract with our checklist
Confirm Receipt
Ensure that the recipient confirms receipt of the notice by replying to the email by the specified deadline.
Document Compliance
Monitor and document the recipient’s compliance with the request to remedy the breach by the specified date in accordance with the relevant clauses of the contract.
Reserve Rights
Keep a record of all communications and actions taken after sending this notice to support any future need to enforce rights reserved under the contract.
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