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Contract Advice

When advising on Contracts the starting point is to ascertain whether there is a binding Contract and if so, the basis of the terms that applied to that Contract.  It is very common where there is no written agreement for parties to get confused as to when the binding contract arose and whether subsequent variations are enforceable.

 

Often, subsequent variations are not enforceable, as they are not supported by any form of consideration which is required in order for such variations to take affect.

In considering courses of action for breach of contract it needs to be appreciated that liability for breach of contract does extend to all of those damages which are within the reasonable contemplation of the parties at the time that the breach occurs.  What may be within the reasonable contemplation of the parties may be subject to arguments of remoteness.  There may also be mitigation arguments, or more likely the lack of mitigation by the party seeking to enforce the breach.

The innocent party for breach of contract is obliged to minimize/mitigate his/her losses insofar as is reasonably practical.

Scenarios often occur where notwithstanding a Contract is breached the innocent party is not able to substantiate any damages, or would not be able to substantiate any damages if they properly mitigated.

 

 

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