Litigation & disputes

Contract disputes in Victoria.

When the other side has not delivered, not paid or walked away, the question is not who is morally right, it is what the contract says and what the recovery is worth. CMK Legal in Richmond advises businesses and individuals across Victoria on breach of contract, termination and damages, with an honest view of the merits before anything is filed.

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Merits assessed first

A plain-English rundown of prospects, likely recovery and cost before you commit to a dispute.

Early resolution preferred

Letter of demand usually issued within days; urgent injunctions where value is at risk.

Costs kept proportionate

Fixed fee for the merits advice, with estimates stage by stage after that.

Victorian courts & VCAT

Magistrates', County and Supreme Courts of Victoria, and the Australian Consumer Law.

What a contract dispute involves.

A contract claim has four moving parts: whether a binding agreement exists and on what terms, whether a term has been breached, whether the breach entitles you to terminate or only to damages, and what loss you can actually prove. Most disputes are decided on the second and fourth of those, not on the first.

Terms are not always in the signed document. Email exchanges, purchase orders, quotes, standard terms on the back of an invoice and a consistent course of dealing can all form part of the agreement. Terms are also implied by statute, most importantly the consumer guarantees and unfair contract term provisions in the Australian Consumer Law, which now reach many small business contracts.

Termination is the highest-risk step in any contract dispute. Terminating without a valid right is itself a repudiation, and it can convert a strong claim into a liability. The safe path is almost always to issue a properly drafted notice to remedy, keep performing under protest where you can, and take advice before you stop.

Limitation periods matter. In Victoria, most contract claims must be commenced within six years of the breach, or fifteen years for a deed. Waiting for a commercial relationship to repair itself is the most common way a good claim is lost.

How we approach a contract dispute.

Establish the terms that actually apply

Signed agreement, quotes, purchase orders, standard terms and the email trail. Which document governs is frequently the whole dispute, particularly in a battle of the forms.

Test breach, termination and loss

Whether the breach is of an essential term, whether a right to terminate has arisen, and what damages are provable and recoverable rather than merely felt.

Resolve it commercially where possible

A well-drafted letter of demand, a without prejudice proposal or an early mediation settles the majority of contract disputes for a fraction of a defended proceeding.

Run it properly if it must be run

The right court for the amount claimed, pleadings that put the case clearly, and counsel briefed where the value or complexity justifies it.

Talk to us if.

  • A supplier or contractor has failed to deliver what was agreed
  • A customer has refused to pay and is alleging defective performance
  • You have received a notice alleging you are in breach
  • You want to terminate an agreement but are unsure of the risk
  • Goods or services delivered do not meet the specification
  • Your standard terms have never been tested and a dispute has arisen
  • You are being held to an unfair term in a standard form contract
  • A deal has collapsed and you need to recover deposits or costs

Bring the contract, the key correspondence and a short chronology. Those three documents usually determine the advice at the first meeting.

How a contract dispute runs.

  1. 01

    Merits review

    We read the contract and correspondence and give a plain-English rundown of liability, recovery and cost.

  2. 02

    Notice or demand

    A notice to remedy or a letter of demand setting out the breach, the remedy sought and a deadline.

  3. 03

    Negotiation

    Without prejudice proposals exchanged, often with a payment plan or a commercial trade-off.

  4. 04

    Mediation

    A structured mediation where the amount justifies it, most matters resolve here or before.

  5. 05

    Proceedings

    Issued in the court appropriate to the amount claimed, with enforcement once judgment is obtained.

Transparent dispute fees.

The first stage, reviewing the contract and advising on prospects, recovery and options, is a fixed fee quoted before we start. Letters of demand are fixed fee. Negotiation, mediation and any court phase are estimated stage by stage so you always know the cost of the next step. Counsel and mediator fees are disclosed separately as third-party costs.

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FAQs

Contract dispute FAQs.

Still unsure? Call us on (03) 9008 7224 and speak to a lawyer, not a call centre.

Do I have a contract if nothing was signed?
Often yes. A contract requires offer, acceptance, consideration and an intention to be legally bound. Emails, a signed quote, a purchase order or a consistent course of dealing can all establish one. What is usually contested is not existence but which set of terms applies.
Can I terminate because the other side breached?
Only if the breach is of an essential term, is sufficiently serious, or a contractual termination right has been triggered and properly exercised. Terminating without a valid right is repudiation and exposes you to a damages claim, so get advice before you stop performing.
What can I recover?
Damages that put you in the position you would have been in had the contract been performed, provided the loss was caused by the breach, was not too remote, and you took reasonable steps to mitigate. Lost profits are recoverable where they can be proved. Distress and inconvenience generally are not in commercial matters.
How long do I have to sue?
Generally six years from the date of breach in Victoria, and fifteen years for a claim under a deed. Different periods apply to some statutory claims, and to domestic building work, so check the limitation position early.
Is it worth suing for a small amount?
In the Magistrates' Court, costs recovery is limited on smaller claims, so proportionality matters. We will tell you plainly when a demand and a negotiated discount is a better commercial outcome than a judgment you may struggle to enforce.
What if their standard terms cap liability?
Limitation and exclusion clauses are read strictly and may be void where they are unfair terms in a standard form small business or consumer contract, or where they attempt to exclude the consumer guarantees. They are frequently narrower than the party relying on them assumes.

Related services.

Debt recovery

Letters of demand and recovery proceedings that get invoices paid.

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Commercial disputes

Contract, supply and business disputes run commercially rather than emotionally.

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Mediation & dispute resolution

Structured negotiation and mediation to resolve matters before costs escalate.

Learn more

Get a clear view of the merits.

Send us the contract, the correspondence or the notice you have received. Start online in a few minutes, or book a consultation and speak to a disputes lawyer the same business day.

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