Breach of Contract – How to Make a Breach of Contract Claim (Small Claims)

Contracts are a part of daily life and can include everything from freelance services and supply contracts to basic purchase agreements. When one party fails to fulfil their part of the deal, you may incur losses, stress and frustration. 

If someone’s breach of contract has caused you a loss or hardship, you may be able to claim compensation for that loss. In this article, we will look at instances where a breach of contract allows you to bring a claim in the courts, and the steps you can take to bring that claim in the small claims court and, in most instances, without the assistance of a lawyer.

What Is Considered to Be a Breach of Contract?

A breach of contract happens when one party does not meet legal obligations in a contract, without a legal excuse, and the other party is harmed by it.

To file for a claim, you must establish that:  

• There was a valid contract (express or implied).  
• The other party did nothing under the contract.  
• You suffered a loss or damage. 

Take a look at an example, the case of Emily:

She hired a contractor to renovate her kitchen. After concluding (halfway through the work), the contractor disappeared after being paid in full. She had to hire another builder to complete and fix the work. This is what people call a case of breach of contract.

When Can You Use the Small Claims Court?

Small Claims courts exist for simple, low-value disputes, and many breach of contract case can be held in Small Claims Courts.

In general, you can make Small Claims if: 

• The amount that you are claiming is £10,000 or less in England and Wales (£5,000 in Scotland)
• Your case does not involve complex legal issues
• You are claiming a quantifiable loss or out-of-pocket expense, rather than for injury or pain and suffering.) 

Please Note: In most breach of contract cases, if your total claim is over £10,000, your claim will likely go on the “fast track”, and the case will have a more formal procedure in Court.

Common Chain of Events That May Lead to a Breach of Contract Claim

Breach of contract claims can occur in a wide range of everyday situations. Here are a few:

• A service provider fails to complete the work they agreed upon.
• A business provides defective goods and refuses to refund you.
• A customer refuses to pay for completed service.
• An agreement is wrongfully or prematurely terminated.
• A deal made either orally or in writing is breached without notice.

These breaches are often suitable for small claims court remedies. 

What Evidence Will You Require?

If your evidence is strong, you will have a better chance at a successful claim. You should aim to get:

• A copy of the contract (if the terms were negotiated by email, be sure to include this as well).
• Any communication providing the context for the agreement and the breach (emails, texts, letters). 
• Evidence of your loss (receipts, invoices for remedial work, payment records). 
• A timeline of events related to the contract: when it was made, when it was breached, and what you did about it.
• Screenshots or pictures of the relevant problems (defective goods, incomplete work).
• Any witness statements (someone who saw the other party abandon the work).

Record everything you think will help your claim and keep it in a specific file, especially if the breach of contract was gradual or involved multiple events.

Step-by-Step: How to Make a Breach of Contract Claim

Step 1. Raise a Formal Complaint

Try to resolve the issue directly. Write and send a complaint stating:

• What was agreed; 
• How it was breached; 
• And what is required for resolution (e.g. refund, reimbursement for losses)

Step 2. Give Them a Reasonable Time to Respond

In most cases, giving 14 days to respond is okay, unless the issue is particularly tricky. Keep a record of all attempts to resolve matters in a friendly and cooperative way; the court advises the parties to try to settle before the action.

Step 3: You should send your Letter Before Action.

Suppose the other party is unwilling to compromise and try to resolve the issue. In that case, you should send a Letter Before Action or a formal notice as a declaratory statement that you are going to take formal action, unless the matter is resolved by a specific date. 

A Letter Before Action is required before litigation, and it should include: 

• Summary of the breach (with actual timeframes);
• Evidence confirming you had a contract and proof confirming what you have lost;
• The total amount of your claim;
• A time frame for them to respond (typically 14 days).

How CaseCraft.AI Can Assist You in Forming a Strong Claim

The legal procedures are daunting, especially if you have not done it before, but that is where CaseCraft.AI comes in.

With our platform, you can:

• Know if your circumstances amount to a breach of contract
• Gather and organise your evidence in a logical way that is acceptable to the court
• Automatically generate a Letter Before Action that complies with the rules
• Ignite your small claim online with confidence and manage your deadlines
• Avoid common mistakes that will lead to claims being rejected

You will not need to have legal qualifications or pay high costs for solicitors. CaseCraft.AI takes away the complexity and allows you to take action.

What Can You Expect as an Outcome?

If you succeed in the process, you could receive:

• Compensation for the financial losses suffered as a result of the breach
• A refund of repair costs or provision of similar fees
• In full or in part, depending on the effect on you

In many cases, a well-presented Letter Before Action is sufficient for someone to settle the matter, and only a small fraction of claims ever actually achieve court orders. When it does go further, small claims hearings are often very straightforward and commonly run as video meetings, designed so individuals can represent themselves.

Conclusion: Maintain Your Obligations 

Contracts are promises, and when someone breaches their promise, you are entitled to receive a benefit for your loss. 

With proper evidence and with the right support, you can pursue your justice, with CaseCraft.AI by your side. 

Launch a Claim for Breach of Contract Today

If someone has breached your contract and the result is that you relied on that contract, and it financially burdened you, CaseCraft.AI has put the tools in your hands so you can take control and reclaim, at a cost you can afford, simply and with confidence.