What Do I Do If a Company Fails to Deliver on a Contract?

When you enter into a contract, you expect the other party to keep their word. But what happens if they fail to deliver? Whether it’s undelivered goods, unfinished services, or missed deadlines, a broken contract can cause significant inconvenience and financial loss.

At RDC Solicitors, we help individuals and businesses resolve disputes efficiently and confidently. Here, our Dispute Resolution team explains what you can do if a company does not deliver on a contract, and how to protect your position from the start.

Act Quickly and Gather the Right Evidence

When things start to go wrong, act promptly. Keep a clear record of what was agreed and how the company has failed to deliver. Retain copies of the signed contract, correspondence, invoices, delivery notes, and any other written communications.

It’s also helpful to write out a simple timeline showing when each obligation was due and what actually happened. This will make it easier to explain your position later, whether to your solicitor, a mediator, or the court.

Avoid reacting impulsively or making threats that could complicate matters. Do not cancel the contract or withhold payment until you are clear on your legal rights. Speaking with a solicitor early can help you take the right action without weakening your position.

Understand What Type of Breach Has Occurred

Not all breaches of contract are the same. Some are minor and can be resolved by agreement; others are serious enough to justify ending the contract entirely.

A breach can occur when the other party fails to perform at all, delivers late, or provides work that falls below the agreed standard. In some cases, they might even tell you in advance that they cannot meet their obligations. This is known as an anticipatory breach.

Only a serious or “repudiatory” breach allows you to treat the contract as terminated. If the failure is less serious, you may still be entitled to compensation, but the contract itself may remain in force. Determining the nature and severity of the breach is an important first step before deciding how to respond.

Assess Your Loss and Consider What Can Be Recovered

To make a successful claim, you must show that you suffered a measurable loss as a result of the company’s failure to perform. This could include the cost of finding a replacement supplier, lost profits, or other expenses that naturally flow from the breach.

The law also expects you to take reasonable steps to minimise your loss. For example, if another company can complete the job at a similar cost, you should do so rather than allowing the situation to worsen.

In most contractual disputes, you cannot recover damages for stress or inconvenience alone. Claims must be based on financial loss or direct harm caused by the breach. Remember too that there are strict time limits for bringing claims, which is typically six years from the date of breach, or twelve years if the contract was signed as a deed.

Review the Terms of Your Contract

Before taking any formal steps, review the contract carefully. Many contracts specify what should happen if one party fails to deliver, including requirements to give written notice, a period to remedy the problem, or an obligation to attempt mediation before going to court.

There may also be clauses that limit or exclude liability, or that set out the specific remedies available. Terminating a contract incorrectly can expose you to a counterclaim, so it is essential to follow the correct procedure.

A solicitor can review the terms for you, explain your options, and help you avoid breaching the contract yourself while seeking a remedy.

Try to Resolve the Dispute Amicably

Court proceedings should usually be a last resort. Many disputes can be resolved through direct negotiation or alternative dispute resolution (ADR).

Your solicitor can help you prepare a clear, formal letter before action, setting out your case and the outcome you are seeking. This often prompts constructive dialogue and can lead to settlement without further escalation.

Mediation is another effective and confidential process where an independent mediator helps both parties find a mutually acceptable solution. It is faster, less costly, and less adversarial than litigation. Even if mediation does not fully resolve the matter, it can narrow the issues in dispute and save time later.

When to Consider Court Action

If negotiation and ADR do not succeed, you may need to issue formal proceedings. This starts with a detailed letter of claim, followed by filing the case in the appropriate court. Smaller matters may go to the Small Claims Court, while larger or more complex cases are dealt with in the County Court or High Court.

The remedies available include damages (financial compensation), interest on money owed, or, in limited cases, an order requiring the other party to perform their obligations (known as specific performance). Injunctions may also be granted to stop further breaches.

Litigation can be time-consuming and expensive, so it is essential to consider whether the likely recovery justifies the cost. Your solicitor will help you assess the strength of your claim and the best strategy for achieving a cost-effective result.

Enforcing a Judgment

Winning your case does not always mean immediate payment. If the other party refuses to comply with a court order, there are several enforcement options. These may include sending enforcement officers to seize assets, obtaining a charge over property, or, in serious cases, starting insolvency proceedings.

Why Early Legal Advice Is Essential

Contract disputes can escalate quickly, and early legal guidance often makes the difference between a smooth resolution and a costly battle. At RDC Solicitors, our Dispute Resolution team works with clients to resolve contract breaches efficiently and strategically. We can assess your position, draft letters of claim, negotiate on your behalf, represent you in mediation or arbitration, and, where necessary, pursue or defend court proceedings. Our approach is practical, transparent, and focused on achieving the best possible outcome for you.

Need Advice on a Breach of Contract?

If a company has failed to deliver on a contract and you’re unsure what to do next, speak to our Dispute Resolution team at RDC Solicitors. We’ll help you understand your rights, protect your position, and find a clear path to resolution. Contact us today on Bingley 01274 723858, Ilkley 01943 601173 or Bradford 01274 735511.