Breach of Contract: What Can You Do When a Supplier Doesn't Deliver?
A breach of contract happens when a supplier fails to do what the contract says. A small breach usually lets you claim damages for your loss, while a serious breach can let you end the contract and still claim damages. The rules vary by country and contract.
This video is general information, not legal advice. The rules on breach of contract, termination and damages vary by country and by contract — speak to a qualified lawyer about your situation.
Key takeaways
- A contract is a promise the law will enforce; breaking one of its terms is a breach.
- A small breach usually lets you claim damages for your loss.
- A serious breach can let you end the contract and still claim damages.
- Damages aim to put you where you would be if the contract had been kept.
- You must keep your loss reasonable.
What this video covers
The video explains breach of contract through a birthday cake mix-up: a lawyer orders a goose cake for Gerald the goose but receives a duck. A contract is a promise the law will enforce, and a breach happens when one side fails to do what its terms require. It then distinguishes a small breach from a serious one. A small breach, such as delivering a day late, usually lets you claim damages for your loss. A serious breach can let you end the contract and still claim damages. Next, the video explains what damages are meant to achieve: putting you where you would have been if the contract had been kept. You must also keep your loss reasonable. In the cake example, you cannot buy a solid-gold replacement and send the supplier the bill. The final practical tip is to get agreements in writing, which makes proving both the terms and the breach much easier. The video provides general information, not legal advice. Rules on breach, termination and damages vary by country and contract, so speak to a qualified lawyer about your situation.
