Summary
- Your options: negotiate, mediation/ADR, or litigate (Small Claims, Fast, Intermediate, Multi‑track).
- Time limits: usually 6 years for simple contracts, 12 years if executed as a deed (Limitation Act 1980).
- Consumer issues: rights and unfair terms governed by the Consumer Rights Act 2015 (with CMA guidance on fairness).
- Costs & tracks: Small Claims up to £10,000; Fast Track £10k–£25k; Intermediate Track £25k–£100k (fixed recoverable costs apply); Multi‑Track for higher/complex claims.
What is a contract dispute?
A contract dispute arises when one side alleges the other has breached a contractual term (e.g. non‑payment, defective performance, late delivery, repudiation). The remedy depends on the contract wording, the type/seriousness of breach, causation, and proof of loss.
Do I have to go straight to court?
No. English procedure expects parties to try to resolve disputes before issuing proceedings, including sending a compliant Letter of Claim and considering mediation/ADR. Even during a money claim, HMCTS promotes mediation because it is often quicker and cheaper than a hearing.
How we help: We draft persuasive pre‑action correspondence, identify commercial settlement ranges, and arrange evaluative mediation with sector‑experienced mediators.
Time limits (limitation periods) you must not miss
- Simple contracts: 6 years from the date of breach.
- Deeds: 12 years from the date of breach.
(Extensions may apply for fraud/concealment; see Limitation Act 1980.)
Tip: Don’t wait for negotiations to “play out” if you’re close to limitation—issue protective proceedings to stop the clock.
Routes to resolution (and costs exposure)
1) Small Claims Track
- Default for claims up to £10,000 (lower thresholds for PI/housing).
- Informal, limited costs recovery (mostly fees/expenses).
- HMCTS has a guided process for “money claims” and mediation.
2) Fast Track (£10,000–£25,000)
- Tighter case management; trial usually within a day; fixed recoverable costs framework applies widely post‑Oct 2023.
3) Intermediate Track (£25,000–£100,000)
- Introduced Oct 2023; fixed recoverable costs by complexity bands; up to 3‑day trials; limited experts.
4) Multi‑Track (over £100,000 or complex)
- Bespoke directions; costs not fixed.
Why this matters: Track allocation drives procedure, timetable and recoverable costs. We structure your case to fit the right track and to maximise settlement leverage.
Typical remedies
- Damages to put you in the position as if the contract had been performed (subject to remoteness/mitigation).
- Specific performance or injunction in appropriate cases (rare; court discretion).
- Interest on money claims (statutory/contractual).
Consumers vs businesses: know your rights (and risks)
If you’re a consumer (or trading with one), the Consumer Rights Act 2015 sets minimum standards (satisfactory quality, as described, fit for purpose) and remedies (repair/replace/refund). It also polices unfair terms (e.g., hidden fees, unilateral variations) under the fairness and transparency tests—see CMA’s detailed guidance.
We routinely review T&Cs against CRA 2015 and CMA fairness guidance to fortify (or challenge) positions pre‑litigation.
Practical next steps (checklist)
- Collect evidence: contract, variations, emails, delivery notes, meeting notes, loss calculations.
- Map limitation: diarise your long‑stop date (6/12 years—simple contract vs deed).
- Send a compliant Letter of Claim and propose ADR (mediation).
- Choose the right forum/track based on value and complexity; consider fixed recoverable costs exposure.
- Protect your position: without‑prejudice offers, Part 36 tactics (where appropriate), mitigation.
Why instruct Saracens Solicitors?
- Sector experience: commercial disputes across tech, property, professional services, retail.
- Cost clarity: fixed‑fee scoping and stage budgets aligned to track/FRC regimes.
- Settlement first: mediation win‑rates above market norms (we leverage judicially‑encouraged ADR to cut risk, time, and cost).
Frequently Asked Questions / Questions & Answers
How long do I have to sue for breach of contract?
Usually 6 years (simple contracts) or 12 years (deeds) from breach. Don’t leave it to the last minute.
What’s the Small Claims limit?
Generally £10,000 in England & Wales (different/lower limits for PI/housing).
Will I recover my legal costs if I win?
In Small Claims, usually only limited fixed costs/fees. Fast/Intermediate Tracks operate fixed recoverable costs; Multi‑Track costs are assessed/budgeted.
Do courts expect mediation?
Courts strongly encourage ADR/mediation, and HMCTS offers mediation in money claims. Unreasonable refusal can have cost consequences.
What if unfair contract terms are involved?
CRA 2015 protects consumers and polices unfair terms; CMA provides detailed guidance on fairness.
