Contract Disputes
Help for individuals and businesses in NSW contract disputes, from breach and unpaid amounts to termination, through to court or NCAT.
A contract dispute arises when the parties to an agreement disagree about what it means, whether it has been performed, or what happens now that it has broken down. Vamp Law acts for individuals and businesses in contract disputes across NSW, from reviewing the contract and sending a letter of demand to running proceedings in the Local, District or Supreme Court or NCAT.
What is a contract dispute?
A contract dispute is a disagreement between the parties to an agreement about what it means, whether it has been performed, or what should happen now that it has broken down. Vamp Law acts for individuals and businesses in these disputes across NSW, whether the contract is a formal written document, a series of emails or an arrangement agreed in conversation.
Contract disputes sit within Vamp Law's civil litigation practice. For advice on drafting or reviewing a commercial contract before anything goes wrong, see contract law.
What kinds of contract disputes does Vamp Law act in?
Vamp Law acts on both sides of contract disputes, for the party claiming and the party defending. Common disputes include:
Breach of contract
one party has not done what the contract required, explained in the guide to breach of contract.
Unpaid amounts
money owing under a contract for goods, services or work already performed.
Disputes about meaning
the parties read the same clause in different ways.
Termination and repudiation
whether a party was entitled to end the contract, or showed it would not perform, covered in the guide to repudiation.
Misrepresentation
a party entered the contract because of a false statement, covered in the guide to misrepresentation.
Variations
whether the terms were changed after signing, and on what terms.
Goods and services
defective goods, poor workmanship or services paid for and not provided.
Loans between family members or friends
informal loans where repayment terms were never written down.
How does Vamp Law assess a contract dispute?
Every assessment starts with whether there was a binding contract at all, which the guide to the elements of a contract explains, and then what its terms were. Terms can come from the written document, from emails and messages, and from what the parties said and did.
The next questions are what went wrong and what it cost. Damages for breach of contract generally aim to put the innocent party in the position it would have been in if the contract had been performed, as the guide to remedies for breach of contract explains. Sometimes the answer lies outside the contract: a promise relied on to someone's detriment can give rise to relief through estoppel, and a contract can be brought to an end by frustration if an unforeseen event makes performance radically different from what was agreed.
With informal loans between family members or friends, the central question is often whether the money was a loan or a gift, and whether the parties intended a legally binding arrangement. Bank records, messages and any record of repayments usually decide that question.
How does a contract dispute proceed in NSW?
Review
Kyra Pastrovic reviews the contract, correspondence, invoices and messages, and identifies the strongest and weakest points on both sides.
Letter of demand
A letter sets out the claim, the amount or outcome sought and a deadline, giving the other party a chance to resolve the matter before proceedings.
Negotiation and mediation
Many disputes settle at this stage. Once proceedings are underway, a NSW court can refer a matter to mediation, with or without the parties' consent (Civil Procedure Act 2005 (NSW), s 26).
Proceedings
If the dispute does not resolve, proceedings are filed in the court or tribunal that has jurisdiction over the amount and type of claim.
Hearing and enforcement
A defended claim proceeds through evidence to a hearing and judgment, and Vamp Law advises on enforcing a judgment that is not paid.
Which court or tribunal hears a contract claim in NSW?
The forum depends mainly on the amount claimed and the type of claim. The limits below are set by legislation and change from time to time.
Local Court, Small Claims Division
claims up to $20,000, heard with as little formality as the matter permits (Local Court Act 2007 (NSW), ss 29 and 35).
Local Court, General Division
claims up to $100,000 (s 29).
District Court
claims up to $1,250,000, or more if the parties consent (District Court Act 1973 (NSW)).
Supreme Court
claims above the District Court limit, and matters that need the Supreme Court's particular powers.
NCAT
consumer claims about goods and services up to $100,000 under the Fair Trading Act 1987 (NSW), and home building claims up to $500,000 under the Home Building Act 1989 (NSW).
How long do you have to bring a contract claim in NSW?
Generally six years from the date the cause of action first accrues, which for a breach of contract is usually the date of the breach (Limitation Act 1969 (NSW), s 14). A claim on a deed has a twelve year limit (s 16).
The contract itself may impose shorter time limits for giving notice of a claim, and some tribunal claims have their own time limits. Checking these early avoids losing a claim on a technicality. This page is general information, not advice on a particular dispute: the answer depends on the facts and the documents.
Frequently asked questions
Contract disputes are what happens when an agreement has already broken down, and the question is how to recover a loss or defend a claim. Contract law covers advice on commercial contracts more broadly, including drafting and reviewing them before a dispute arises.
Yes, an oral contract can be binding and enforceable. The difficulty is proving what was agreed, so messages, emails, invoices and the way the parties behaved afterwards become the main evidence of the terms.
Often, yes, if the evidence shows the money was a loan rather than a gift. Bank transfer records, messages discussing repayment and any repayments already made are usually the most useful evidence.
Time limits apply, and they can start running earlier than people expect.
Not necessarily. Small Claims Division hearings are conducted with as little formality and technicality as the matter permits, and the rules of evidence do not apply (Local Court Act 2007 (NSW), s 35).
Advice at the start can still help you decide whether the claim is worth bringing and how to present the evidence.
That is common. The other party may file a defence and a cross-claim, and the outcome can turn on who was entitled to terminate or withhold performance. Vamp Law reviews both sides of the story before recommending a course.
Speak with Vamp Law about a contract dispute
If an agreement has broken down, make an enquiry or call +61 431 569 686 to speak with Kyra Pastrovic about your options.
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