Letter of claim for breach of contract

If your business has suffered loss due to another business breaching your contract with them, you can use this letter of claim (also known as a letter before action) to demand compensation.

The letter will inform the business that their breach of contract has caused you loss. If your contract allows you to claim a fixed amount for the loss, the letter will give you the option to claim that; otherwise, the letter will set out the monetary value of that loss and how you calculated it.

It's best if you've already contacted the other business about the problem before sending this letter. Although you can use it as the first formal notification of the contract breach, it's generally intended as a final attempt to resolve the issue before starting court proceedings. The letter is drafted to comply with the courts' Practice Direction on Pre-Action Conduct and Protocols, meaning you should be able to start court action if the letter doesn't lead to a resolution.

Note:

• Your contract with the other business must be in writing (rather than a verbal agreement).
• If it's a debt claim (i.e. the business hasn't paid for goods or services you supplied) use our Letter of claim for an outstanding invoice instead.
• Don't use this letter if the breach relates to construction and engineering disputes, housing disrepair claims or dilapidations of commercial property (as these issues are covered by separate, specialised pre-action protocols).