How to sue for breach of contract in the small claims court

Before you can sue for breach, you must show a contract actually existed. English contract law requires all four of the following to be present.

A clear proposal — "I will paint your kitchen for £600" — capable of being accepted on its terms.

The other side agrees to the offer as it stands. A counter-offer kills the original offer; the parties are still negotiating until both align.

Each side gives something of value — money, goods, services, or a promise. Without consideration, there is no contract (only a gift).

Intention to create legal relations

The parties must have meant the agreement to be legally enforceable. This is presumed for commercial deals; presumed not for purely social or domestic arrangements unless rebutted.

How to sue for breach of contract in the small claims court

The four elements of a binding contract

Step-by-step: bringing your claim

Quantifying your loss

Damages for breach of contract are designed to put you in the position you would have been in had the contract been performed. The classic test from

(1854) limits recovery to losses that:

• Arise naturally from the breach (direct loss); or
• Were reasonably in the contemplation of both parties when the contract was made (consequential loss).

You also have a duty to mitigate — to take reasonable steps to reduce your loss. If you let damage compound when a quick fix was available, the court will reduce your award.