When signing a contract with someone, most people don’t think they will ever need to write a Breach of Contract Notice. Life circumstances change, and you could find yourself in a situation where the other party isn’t performing as agreed under the contract. This can be a confusing situation, as you don’t know what to do, whether you should immediately end the contract or not.
A Breach of Contract Notice gives you two options. You could remind the other party of their responsibilities and give them one final chance to act accordingly. You could also use it to announce the ending of the contract with an appropriate explanation. It’s good to know your options, and a Breach of Contract Notice could be a solution to many problems.
A Breach of Contract Notice is a formal document announcing that you plan to terminate a specific agreement. You can’t end the contract without providing a valid explanation. That’s why you have to thoroughly explain how obligations aren’t fulfilled or how another party has broken the rules you set together.
The most common reason for sending a Breach of Contract Notice is when the other party fails to do something they’ve promised. When they delay performing their obligations, this causes you further problems and financial loss.
Some people send a Breach of Contract Notice as a warning, although they don’t intend to immediately terminate a contract. This method is proven to be very useful. In many cases, the other party takes you more seriously, more than they would after a simple verbal notice.
They may be willing to do things you’ve suggested in your letter to work things out and avoid breaching the contract.
On the other hand, you can also use a Breach of Contract Notice to announce that you will officially terminate the contract, and it’s highly recommended to do so. It could be the first step in protecting your legal rights in the next phase. Therefore, make sure to include all terms suggested by experts to make it valid.
Depending on your state, a Breach of Contract Notice may also be known as:
Breach of Contract Letter
Notice of Breach
Some people believe that a Breach of Contract Notice is reserved only for big businesses whose contracts are worth a lot of money, but that’s not true. Anyone who feels like the other party isn’t respecting the agreement's rules has the right to send a Breach of Contract Notice.
Your contract's financial aspect doesn’t matter that much, as some people care more about principles than money.
To sum it up, you need a Breach of Contract Notice in two situations. First, when you want to terminate a contract because the other party isn’t respecting it. Second, when you want to warn the party that you might end a contract if they don’t start performing under the contract conditions.
The only situation when you shouldn’t use a Breach of Contract Notice is when you want to terminate a contract for some personal reasons, although the other party hasn’t done anything to provoke that. You mustn’t use this document as an excuse, or even worse, include false information or blame the other party for something that’s not true.
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When you finish, you can download your Breach of Contract Notice as a PDF or Word Document, whatever suits you better.
To create your document, please provide:
The Date: The date when the party is officially told of the breach is the most essential part of every Breach of Contract Notice, as it can help you in court.
The Parties Involved: Names and personal details of all parties involved.
The Contract Details: Details like the value of the contract and the date when it was signed.
The Breach Description: Explain how the other party failed to perform, and, if possible, provide evidence.
The Cure: If you want to give the other party a chance to avoid the breach, you should set clear expectations of what they need to do.
The Cure Period: The cure period is time they have to fix the issue; otherwise, the contract will be terminated. The cure period usually lasts 30 days, but you can set any period you want.
To make your Breach of Contract Notice stronger, you could also provide the following information, but it is not obligatory:
Material Evidence: If you have a material breach, specify the amount of money lost due to the other party’s failure to perform.
Breach: A breach is an act of breaking an agreement; it usually means failing to do something specified in the contract.
The Cure: Actions you require the other party to undertake to fix their mistakes if they want to avoid breaching the contract.
A Breach of Contract Notice doesn’t have to be notarized. Only the party who is giving notice of the breach, in this case, you, has to sign the document. The only problem is the other party might deny that they’ve ever received your letter. That’s why it may be a good idea to involve a lawyer who could send a Breach of Contract Notice on your behalf, to make it more official.
When you send a Breach of Contract Notice, make sure to keep one copy for yourself and one for your legal advisor if you have one. You could use it as proof in future procedures. The other party should notify you when they’ve received your letter and what steps they want to resolve. Bear in mind that some people might ignore your letter, which requires further, more severe actions.
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