Breach of Contract Disputes

Breach of Contract Lawyer Sydney: Enforcing and Defending Contract Claims

A breach of contract happens when a party fails to do what the contract requires, does it late or does it badly. If you have suffered loss, you may be able to recover damages, end the contract or force the other side to perform. In NSW you generally have six years from the breach to sue on an ordinary contract, and twelve years on a deed.

Reviewed by Sam Saadat, Principal Lawyer, Invictus Legal. Last reviewed: 7 October 2026

Invictus Legal is a Sydney commercial litigation firm specialising in contract disputes for businesses, builders, landlords, suppliers and individuals. As an experienced breach of contract lawyer in Sydney, we act for parties bringing claims and parties defending them, from the first letter of demand through to judgment. Contract disputes are a core part of our commercial law practice.

What counts as a breach of contract?

A breach is any failure, without lawful excuse, to perform a promise in the contract. How serious the breach is decides what you can do about it.

• Breach of a condition. A condition is a term so essential that any breach of it entitles the innocent party to terminate the contract, as well as claim damages.

• Breach of a warranty. A warranty is a less important term. Breach usually gives a right to damages only, not a right to terminate.

• Breach of an intermediate term. Many terms sit in between. Whether you can terminate depends on whether the breach is sufficiently serious. The High Court explained this classification in Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd [2007] HCA 61.

• Repudiation. A party repudiates when it shows it is unwilling or unable to perform the contract in a substantial way, or commits a breach serious enough to justify termination. The innocent party can then choose to accept the repudiation and end the contract.

Getting this classification wrong is risky. If you terminate when you were not entitled to, you may become the party in breach.

What remedies are available for breach of contract?

The main remedies are damages, termination, specific performance and recovery of a debt.

• Damages: money compensating you for loss caused by the breach, generally aimed at putting you in the position you would have been in had the contract been performed.

• Termination: ending the contract for breach of a condition, a serious breach of an intermediate term, or repudiation, usually alongside a claim for damages.

• Specific performance or an injunction: a court order compelling a party to perform, or restraining it from acting in breach. These are discretionary and usually only granted where damages would not be adequate. If you need to stop conduct immediately, see our page on urgent injunctions.

• Debt: where the contract fixes a sum that is due and unpaid, you can sue for that amount as a debt. See debt recovery.

How long do I have to sue for breach of contract in NSW?

For most contracts you have six years from the date the cause of action first accrues, which for breach of contract is usually the date of the breach.

Under the Limitation Act 1969 (NSW) s 14(1)(a), an action founded on contract (other than a deed) is not maintainable after six years. If the contract is a deed, s 16 allows twelve years. Once a limitation period for recovering a debt or damages expires, s 63 extinguishes the right to that money, not just the right to sue. Do not wait until the final months: evidence fades and the time needed to prepare proceedings is often underestimated.

Which court will hear my breach of contract claim?

In NSW the court usually depends on how much you are claiming.

• Local Court: claims up to $100,000. Claims up to $20,000 are heard in the Small Claims Division (Local Court Act 2007 (NSW) s 29).

• District Court: claims up to $1,250,000, and larger claims if the parties consent.

• Supreme Court of NSW: unlimited civil jurisdiction (Supreme Court Act 1970 (NSW) s 23), including larger commercial claims and urgent equitable relief.

Invictus Legal appears in Local Courts, District Courts and the Supreme Court across Sydney and NSW.

What are the steps in a breach of contract dispute?

Most disputes follow four stages, and many settle before the last one.

1. Assessment and letter of demand. We review the contract, identify the breach and your loss, and send a letter of demand setting out the claim and a deadline.

2. Negotiation. Without prejudice discussions and offers often resolve the dispute quickly and cheaply.

3. Mediation. A neutral mediator helps the parties reach a deal. Once proceedings are on foot, the court can refer the matter to mediation with or without the parties' consent (Civil Procedure Act 2005 (NSW) s 26).

4. Court proceedings. If the matter does not resolve, we file a statement of claim (or defence), manage evidence and represent you through to hearing.

What evidence should I gather?

Collect every document that shows what was agreed, what happened and what it cost you.

• The signed contract, quotes, purchase orders, terms and conditions and any variations

• Emails, text messages and letters between the parties

• Invoices, payment records and bank statements

• Photographs, reports or expert assessments of defective work

• A timeline of key events while it is fresh in your mind

• Records of your loss, such as replacement costs, lost profits and extra expenses

If you are still negotiating a contract rather than enforcing one, our contract drafting and review service can help you avoid disputes in the first place.

What does it cost?

The cost depends mainly on the amount in dispute, how many documents and witnesses are involved, whether experts are needed, and how far the matter goes before it settles. A letter of demand and negotiation costs far less than a defended hearing. Fees for commercial matters are determined by the scope of work involved, and we issue a costs agreement before we commence any work, so you have full transparency from the start. In some cases a successful party can recover part of its legal costs from the other side.

Frequently asked questions

How long do I have to sue for breach of contract in NSW?

For an ordinary contract, six years from when the cause of action first accrues, usually the date of breach (Limitation Act 1969 (NSW) s 14(1)(a)). For a contract made by deed the period is twelve years (s 16). Once the period expires, the right to the debt or damages is extinguished (s 63).

Can I terminate a contract because the other party breached it?

Only if the breach is of a condition, is a sufficiently serious breach of an intermediate term, or amounts to repudiation. Breach of a minor term (a warranty) usually gives a right to damages only. Terminating without a proper basis can make you the party in breach, so get advice first.

Which court hears a breach of contract claim in NSW?

It depends on the amount claimed. The Local Court hears claims up to $100,000 (the Small Claims Division up to $20,000), the District Court up to $1,250,000 or more by consent, and the Supreme Court of NSW has unlimited jurisdiction.

Do I have to send a letter of demand before suing?

A letter of demand is usually the sensible first step because it puts the other party on notice and often resolves the dispute. It also shows the court you tried to settle the matter before suing. We can prepare and send one on your behalf.

Will my dispute go to mediation?

Many contract disputes are resolved at mediation. Once proceedings are underway, a NSW court can refer the matter to mediation with or without the parties' consent under the Civil Procedure Act 2005 (NSW) s 26.

Speak to a breach of contract lawyer in Sydney today

If a contract has been broken, or you have been accused of breaching one, get advice early. Call Invictus Legal on 02 8553 0500, or 0410 600 230 for urgent matters such as urgent injunctions, or book a consultation online.

This page is general information only and is not legal advice. Contact Invictus Legal to discuss your situation.