Remedies for Breach of Contract Australia

Remedies for Breach of Contract in Australia: What You Need to Know

Contracts are an essential tool in business agreements, as they outline the terms and obligations of each party involved. However, breaches of contract can occur, and when they do, knowing the right remedies to pursue can make all the difference.

In Australia, there are several remedies available for breach of contract. In this article, we’ll explore some of the most common options and how they work.

1. Damages

One of the most common remedies for breach of contract is to seek damages. This refers to compensation awarded to the injured party to make up for any financial loss caused by the breach. Typically, damages are calculated based on the actual losses incurred by the aggrieved party, as well as any loss of future profits.

There are two types of damages available in Australia: general damages and special damages. General damages refer to losses that are foreseeable but not proven, whereas special damages refer to specific losses that can be proven.

2. Specific Performance

A contract can also be enforced through specific performance, which refers to a court order requiring the breaching party to fulfill their obligations under the contract. This option is often pursued in cases where damages wouldn’t be sufficient to remedy the breach or if the contract involves unique or irreplaceable goods or services.

However, specific performance may not be ordered if it would be impractical or impossible to enforce, or if it would be unduly burdensome for the breaching party.

3. Rescission

Another remedy for breach of contract is rescission, which involves terminating the contract and returning the parties to their pre-contractual positions. This option is typically only pursued in cases where the breach is serious and fundamental, such as cases of fraud or misrepresentation.

In some cases, rescission may also entitle the injured party to damages to compensate for any losses incurred as a result of the contract.

4. Injunctions

Injunctions are court orders that prevent the breaching party from taking certain actions, such as breaching the contract further or infringing on the aggrieved party’s rights. Injunctions are typically sought in cases where damages wouldn’t be sufficient to remedy the breach, such as cases involving intellectual property.

Injunctions can be temporary or permanent, and can also be coupled with damages or specific performance orders.


Breach of contract can have serious consequences for both parties involved in the agreement. However, knowing your options for remedies can help you protect your interests and ensure that you receive adequate compensation or enforcement of the contract.

Whether you choose to seek damages, specific performance, rescission, or injunctions, it’s important to work with experienced legal counsel to navigate the complexities of breach of contract cases in Australia.