Remedies for breach of contract NZ: What Can You Do When A Customer Breaches A Contract?
A contract is a legally binding document that is breached when any of the provisions, terms or conditions are not met. The document basically defines certain obligations that must be fulfilled by one or both parties entering into the contract. When these obligations are not fulfilled or a party takes steps to prevent an obligation from being fulfilled, breach of contract has occurred. Below are some examples of remedies for breach of contract NZ law has in place.
There are certain rights and legal actions that can be taken in the event that a customer breaches a contract. The type of action depends largely on the type of breach that occurred. These tips from an Auckland breach of contract lawyer might help with remedies for breach of contract NZ, but you should consult a lawyer for legal advice.
- Material Breach
This is a non-fulfillment of the duties set out in the contract. You can seek damages in the event that the customer has not met their obligations in terms of the contract. For example, if the contract stipulates that the customer is obligated to pay a certain amount of money by a certain date and this duty is not fulfilled, you can seek a legal remedy through a civil court.
- Fundamental Breach
A fundamental breach of contract allows you to terminate the contract with immediate effect as well as sue for damages in a court of law. In these cases, damages in excess of the actual monetary value of the contract can be sought. For example, if non-payment by a customer resulted in the loss of other business, you may be able to claim for these losses in civil court.
- Anticipatory Breach
This is where a lawsuit can be instituted in anticipation that a customer will not be able to fulfill their financial or other obligations in accordance with the contract. Once again, remedy can be sought in a court of law in the form of financial settlement however, this more often than not only results in the early termination of the contract.
For example, if it becomes clear that a customer will not be able to pay on time, the contract can be terminated and any work that is being done halted with immediate effect. It may be necessary to seek a court order to terminate the contract legally as a result of anticipatory breach.
- Minor Breach
A minor breach of contract is where only one or some of the terms or conditions of the contract have not been met. For example, if a customer fails to make payment in full, you can sue for the outstanding amount. Should a customer not fulfill any of the other duties of the contract such as fair use of rental equipment or damage to the equipment, the contract can be terminated and full settlement and damages requested through a court of law.
It is recommended to have a lawyer draw up all legal contracts with customers in order to ensure that all terms and conditions are legal and binding and that reparation can be sought in a court of law. If a breach does occur, and you are looking for remedies for breach of contract NZ law allows, it is also advisable to hire an Auckland breach of contract lawyer depending on the nature of the breach and the size of the damages being sought.