Most of the time, it is the other party who faces damages or problems operationally when one party violates its side of the agreement. This is the reason why in such cases, sending a legal notice against breach of contract becomes necessary to take legal steps instead of letting things go out of hand.
In India, the legal course of conduct in cases of breach of contract is determined by the Indian Contract Act, 1872, which prescribes the legal duties and obligations for each of the parties to such negotiations.
In case you want to send a legal notice about the breach of a contract, whether it relates to the business agreement, employment contract, or personal deal, you should know how to send a notice properly and legally. Let’s look at the steps, the process, and above all, the important things to keep in mind while sending a legal notice regarding contract breach.
What Is Breach of Contract?
The first party will not be doing his work according to the contract; hence, the other party has to face inconvenience as a consequence of that. The inconvenience could be in the form of:
Non-performance: The party does not deliver the services or goods as per the agreement.
Interference: One party prevents the other or causes obstruction while they do something fulfilling their obligations under the contract.
Violating provisions of the contract: A party goes against certain provisions in the agreement.
Desire to end the contract: A party simply communicates that they do not wish to continue in the contract.
Poor or inferior quality of work delivered: Work is not done or delivered as it should have been, in terms of quality and other parameters.
For What Purpose Should a Legal Notice Send for Breach of Contract?
Legal notice is a formal written communication sent by one party to the other aggrieved of the breach of contract. Such a notice is generated with the following object:
Officially notify the breaching party of failure to comply with the contract.
Provides a chance for rectification during the time stipulated.
Compensates the aggrieved party for all monetary losses or damages caused due to the breach.
Creates a communication record that may be vital for future litigation.
At times, ignoring the legal notice or being non-compliant with it could result in a court proceeding wherein damages are claimed or other remedies sought by the aggrieved party.
Steps for Send of Legal Notice for Breach of Contract
Before sending a legal notice, one should ensure that the contents are rightly drafted. In fact, the notice should be in a formal structure and use all terms as laid out in the agreement. Here are the steps to be followed:
- Consult an Advocate
Sending legal notice for the breach of a contract is a very serious issue. It is widely recommended to consult a lawyer, as the drafting of the notice is very important. The lawyer knows the correct legal format, language, and particulars about which to include in notice so as to make it legally valid. - Information to be Included in the Notice
To ensure that the notice is clear and enforceable, it should include the following:
Particulars of the breaching party: The legal names and addresses must be correctly applied for the case in question.
Date of receipt of notice: This is pertinent because it will determine the date on which the breaching party received notice of the breach officially.
Breaching details: Specific mention of which clauses or provisions of the contract were breached must be enlisted. This might include failure of duty, refusal to engage with the contract or any kind of breach.
Remedies sought: Indicate what the breaching party must do in order to rectify the situation- namely, either rectify the situation or compensate for the damage done.
Allowable time for compliance: An appropriate window for having the breaching party react or take corrective action should be provided for (generally 15 to 30 days). - Notice Clause of the Contract
Most contracts stipulate a notice clause delineating how legal notices should flow. These clauses may specify:
Means of communication (registered post, email, courier, etc.).
Nature of communication (formal communication, legal notice, etc.).
Breach of this clause may render the notice invalid, which could be favorable for the party breaching the contract. - Material Breach of the Contract
It is crucial to mention all material breaches of a contract in a legal notice. A material breach is one that effectively defeats the object of the contract and greatly injures the non-breaching party. Such breaches are viewed with more severity due to their likely long-term effect. - Request for Financial Compensation
If the breach has led to a monetary loss or damage, then the notice must expertly outline the kind of compensation demanded. This can include loss of income, project delays, or any other loss, be it tangible or intangible, caused by the breach.
The Legal Notice Format
A legal notice must be brief, direct, and professional. Do not vague phrases that could cause confusion or delay. This shall be a tone respectful but firm, and the language should not be open to misinterpretation.
Example Format for Legal Notice:
Heading: “Legal Notice for Breach of Contract.”
Introduction: Write the names and addresses of both parties entering into the pact.
Description of the breach: Clearly mention the clause violated and actions incurred that lead to a breach.
Legal standing: Cite the applicable provisions such as the Indian Contract Act which backs the claim.
Action required: Clearly state what the breaching party must do to rectify the situation, and by when.
Claim for damages (if any): Demand compensation for losses suffered as a result of the breach.
Closing statement: Provide a formal concluding remark, such as “Should this not be resolved within the aforementioned time frame, action would be initiated.”
How to Reply to Consider However a Legal Notice for Breach of Contract?
In the event of receiving a legal notice, the respondent should act immediately. The response might entail either:
Admitting the breach and suggesting a course of action to remedy the situation (i.e., make payment or complete the work under contract).
Denying the breach and offering defenses as to why the respondent was unable to conform to dayas of the Contract.
If the breaching party fails to comply, the aggrieved party can proceed with a suit in a court of law.
Legal Notice for an Employee Breach of Contract
This can also include sending legal notices for breach of contract to employees in instances of noncompliance with terms mentioned in their offer letters or contracts. Some of these breaches would include non-fulfillment of performance expectations, broken confidentiality agreements, or unauthorized absences. Employers usually try to resolve the matter internally through proper communication and subsequent warnings before they can opt for the legal notice.
How MyAdvo Acts as a Helping Hand
MyAdvo can connect individuals with top-rated legal practitioners if one does not have a clue about writing legal notices or needs help locating a competent lawyer. Whether drafting notices, asking for compensation, or filing a case, their vast pool of experienced lawyers across India offers quick access. Just select the lawyer according to your requirement, and let him proceed through the legal process with you.
To sum up, sending a legal noticed breach of contract is very essential in remedying disputes involving either of the parties and precociously uplifting one’s interests. Proper adherence to procedure and details can help in an efficient resolution of the matter and avoid expensive legal wars.
