Glossary
Breach of contract
A breach of contract is a failure by one party to do what it promised in the contract, without a valid excuse.
A breach of contract happens when a party does not do what the contract says, does it late, or does it badly. Examples include missing a deadline, not paying an invoice, or sharing confidential information.
Contracts often treat breaches differently depending on how serious they are. A material breach may allow the other party to terminate, sometimes after a cure period to fix the problem. A minor breach usually leads to a claim for the loss it caused rather than ending the contract. The usual aim of a damages claim is to put the other party where it would have been if the contract had been performed.
Claims have time limits. In England and Wales, the Limitation Act 1980 says an action on a simple contract cannot be brought after six years from when the cause of action accrued, and twelve years for a deed.
Example
A client that still has not paid an invoice 60 days after the agreed net 30 deadline is in breach of the payment terms.
What the legislation says
An action on a simple contract cannot be brought after six years from when the cause of action accrued; an action on a specialty (such as a deed) has twelve years.
Source: Limitation Act 1980, ss.5 and 8Checked 7 October 2026Pending lawyer review
Related
See it in use