You need a breach of contract letter. A supplier missed the delivery date. A client hasn’t paid. A contractor walked off site. A business partner isn’t doing what they agreed. You want to hold them to the contract, or get out of it, and you know you need to put something in writing first.
You’re right. In Australian contract law, what you write, and when, determines what you can do next. Here is how to get it right.
Why the breach letter matters legally
A breach of contract letter, usually called a notice to remedy breach or notice of default, does three things:
- It formally puts the other party on notice of the breach and gives them a chance to fix it. Most contracts require this before you can terminate, and even where they don’t, courts expect it.
- It preserves your right to terminate. If you keep performing without complaint, you can be taken to have affirmed the contract and waived the breach.
- It creates the record you will rely on at the tribunal or court.
Send nothing, or send the wrong thing, and you can lose the right to end the contract, or end it wrongfully and become the party in breach yourself.
What the letter must contain
- The contract. Its date, the parties and the clause or clauses breached.
- The breach. Precisely what they did or failed to do, and when, with reference to the contract term.
- The classification. Whether the breach is of a condition, an essential term or a time-of-the-essence obligation (which allows immediate termination), or a lesser term (which generally requires notice and an opportunity to remedy).
- The remedy required and a reasonable deadline. What counts as reasonable depends on the breach and the contract.
- The consequences if not remedied: termination, a claim for damages, withholding of payment, or specific performance.
- A reservation of rights so the letter isn’t read as an election to affirm the contract.
Ready to put it in writing?
Answer 3 quick questions to check you have the details your document needs, and see your next step.
1. Who is this about?
2. How much is at stake?
3. Do you have it in writing?
Your result is ready. Want a copy by email? (optional)
Common mistakes that void the notice
Not serving it the way the contract’s notices clause requires. Giving too short a period to remedy. Purporting to terminate for a minor breach that doesn’t justify termination. Citing the wrong clause. Demanding something the contract doesn’t provide for. Any of these can make your termination a repudiation, flipping you from the wronged party into the one facing a damages claim.
If you’ve received a breach notice
The same rules apply in reverse. Check whether the notice complies with the contract’s notice clause and gives a proper period to remedy. Check whether the alleged breach is real, and whether it’s of a kind that justifies the threatened consequence. Respond in writing before the deadline, either remedying the breach, disputing it with reference to the contract, or proposing a resolution. Silence is the worst option: it is often treated as an admission and can trigger a valid termination.
Special regimes
Some contracts have statutory overlay. Residential building contracts have specific notice requirements under state building Acts. Retail leases require notices under state retail leasing legislation. Construction subcontracts interact with security of payment laws. Consumer contracts are subject to the Australian Consumer Law’s unfair contract terms regime. A letter that ignores the overlay can be ineffective.
DIY vs Claim Done vs lawyer
| Option | Cost | What it is based on | Turnaround |
|---|---|---|---|
| Free template | $0 | A generic form | Immediate; may be invalid |
| Claim Done | $49 flat | Your answers about the agreement and the breach. Check your contract’s notices clause and serve the notice the way it requires. | About 5 minutes |
Put them on notice properly. Get your notice to remedy breach drafted for $49. Done in about 5 minutes. You approve it before it is sent.
What happens when you put it in writing — properly
Same problem. What a prepared case looks like.
Getting it drafted
Can I have a Notice to Remedy Breach drafted for me instead of writing it myself?
Yes. Claim Done (claimdone.com.au) drafts a Notice to Remedy Breach from the answers you give about your situation for a flat $49 AUD. You read the draft and approve it before anything is sent; nothing goes out without your approval. Start at claimdone.com.au/begin/?service=notice-to-remedy-breach. Claim Done is not a law firm and does not give legal advice.
How much does a Notice to Remedy Breach cost, and how long does it take?
$49 AUD flat, shown before you pay, with no subscription. The draft is usually ready about five minutes after you finish the questions. Email delivery is free; registered post is $29 extra. It covers every Australian state and territory.
Do I need a lawyer to send a Notice to Remedy Breach in Australia?
No. There is no legal requirement to use a solicitor to write or send a Notice to Remedy Breach; many people send their own. Claim Done drafts it for you and you approve it before it is sent.
What does Claim Done do that a free Notice to Remedy Breach template doesn't?
It drafts the Notice to Remedy Breach from your own facts under your state's law, naming the right Act and, where it applies, the tribunal, regulator or court that comes next if they do not respond. Nothing is sent until you approve it. Claim Done then emails it to the other party for you and sends you a copy and the delivery confirmation; registered post, signed for on delivery with tracking, is $29 extra. The key dates in the letter are listed on your dashboard.