notice of contract default letter sample

Additionally, should the breach not get resolved out of court, the notice of breach and any responses can be used as evidence in court to show that the party knew or should have known of the breach. By sending notice, you give the other party the chance to become aware of their breach and subsequently, hopefully, fix it before a lawsuit becomes necessary.

As we’ve discussed in previous posts, it behooves you to try and resolve breaches and other contractual issues outside of court and sending notice of breach is a good first step to put the other party on notice of the issue. Department of Professional Vocational Standards, 11 Cal.App.2d 554, 557 (1936).Įven if your contract doesn’t require a notice of breach, it is still best practice to send notice anyway. As such, it is important to ask whether the other party’s conduct or failure to act has resulted in a breach that goes to the root of the contract’s purpose. For example, while you may provide notice in case of any type of breach, but most contracts provide for notice of breach in the case of a “material breach.” A total or complete breach of the contract is of course material, but whether a partial breach is material depends on the importance or seriousness thereof and the probability of the injured party getting substantial performance. The notice clause in your contract is your guide. A typical notice of breach cites the clause or clauses of the contract the party is breaking, as well as a basic outline of the facts surrounding the breach.Ĭontracts often vary as to what kind of breaches require a notice of breach, when they are to be be sent, and what specifically needs to be in the notice. It is usually written by a lawyer, especially if a lawsuit is likely. What exactly is a notice of breach? A notice of breach is usually a letter (notice) that lets the other party know that they are in noncompliance (in breach) with the contract. As a refresher on breaches, in order to succeed on a claim for breach of contract, a plaintiff “must prove (1) the contract, (2) the plaintiff’s performance of the contract or excuse for nonperformance, (3) the defendant’s breach, and (4) the resulting damage to the plaintiff.” Richman v. Some contracts require a notice of breach of contract to be sent to the breaching party before a lawsuit can be filed. Moreover, the notice of breach can be helpful both as a step to resolving contractual issues, as well as to establish your performance or excuse for nonperformance and the other party’s breach.

Once you’ve weighed your options and decided to sue for breach of contract, what do you do first? Often, a notice of breach, sometimes called a demand letter, is a necessary first step.

Notice of contract default letter sample