Contracts are a key aspect of every business and unfortunately, an area where disputes commonly arise.
If the contract is of high value or importance, it is recommended to get professional advice from a suitably qualified advocate as early as possible. We can advise on all aspects of Isle of Man contract law.
The following issues are important to consider:-
- the terms of the contract – this is the obvious starting point where it’s important to look at the type of breach – whether it is a fundamental breach of contract or not – and also whether the written contract may have been varied, either in writing or by conduct.
- the type of breach – if the other party is in breach of contract (if the breach is not clearly or obviously a fundamental breach) the contract will still continue, and both parties will need to continue on that basis. A common mistake is to assume that if the other party has breached the contract, you can terminate it. However, in many situations, you should give the other party the opportunity to remedy the breach.
- what loss has been caused? – in most cases where there is a contract dispute the remedy will be damages. As with any dispute, it is essential to consider, is it worth suing the other party? Are they likely to be in a position to pay?
- Business to business or business to consumer? – be aware that with consumer contracts or employment contracts, a court may not accept certain clauses, such as exclusions or limitations of liability which are not considered reasonable or proportionate.
At Simcocks, we will take time to understand the contract, its subject matter, its terms and their effect. After reviewing your case, we will advise if we think we can resolve your dispute and the approximate costs involved.