Legal notice for non-performance of the contract is a formal intimation between two people warning the other before legal action is initiated. You can send a legal notice for non-performance of a contract to anybody, in case he/she has not performed their part of the agreement. The role and importance of legal notice for non-performance of a contract become important when there has been a breach of the terms. Legal notice for non-performance of contract can be filed for anyone from a dealer to an employee, tenant, friend, company, bank, etc.
We often enter into various agreements, contracts and memorandum of understanding before pursuing any business or service arrangement. An agreement defines and confines the role of the either party to avoid any future legal course of action due to breach of the agreement. The party to such an agreement incorporates the entire extent of the work to be performed by each party along with the rights and liabilities arising out of the subject matter of arrangement. Most of the Agreements also inculcate the mode of dispute resolution arose between the parties via mediation, arbitration or any other mode as agreed upon between the parties.Yet there are instances where one or the party violates or breaches the agreement.
Breach of contract is a legal cause of action and a type of civil wrong, in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party’s performance. Breach occurs when a party to a contract fails to fulfill its obligation(s) as described in the contract, or communicates an intent to fail the obligation or otherwise appears not to be able to perform its obligation under the contract.
In India, all the contracts and agreements are governed by the Indian Contract Act, 1872. So, when a contract or a clause of it is breached, a party can send a legal notice for it under the Civil Procedure Code.
The legal notice for non-performance of contract must contain the following:
The legal notice must be drafted in the letterhead of an advocate which is to be specific and proper.
It should contain addresses and contact details of the advocate.
The date on which the legal notice is issued including the name, address, and contact details of the person to whom the legal notice is issued is to be stated.
Since the legal notice for non-performance of the contract, it is going from the victim's end, therefore, the name and details of the victim should also be mentioned.
It should be made clear in the notice as to how your right has been infringed due to the act or omission by the opposite party and for that what you want from him. A specific direction must be given to the opposite party along with a time limit.
The notice must be signed (with date) by the advocate and the sender.
LEGAL NOTICE
Date- __/__/____
To,
_________
__________
Subject- Breach of Contract
Dear Sir,
Under the instruction and on behalf of my client Ms. A, Resident House No. 3/96, Gomti Nagar, I do hereby serve you with the following notice:-
1. That my Client Ms. A entered into an agreement with you dated ____ (hereinafter the Agreement)
2. That in terms of the said agreement you are required to _______________, as per clause ___ of the contract.
3. That it has come in Notice to my client that you have breached the contract in the following manner-
_______________________
___________________________
4. That the specific clause which are violated or breached significantly are “________________________________________”
5. That you are further requested to refer the attached documents proving the breach of the contract on your part.
6. That on behalf of my Client I demand that you rectify the breach immediately and take the following steps on your part to make good the breach done by you-
_______________________________
_______________________________
Within 15 days of the time period, you are required to take the above specific actions.
7. That on failing to take the above-stated steps, I will take appropriate legal action against you seeking all remedial and punitive remedies that are available under the applicable laws.
Name and Signature
Advocate
No specific documents are required to execute or make a legal notice. However, while making the legal notice, one must scrutinize the identity proofs of the parties in order of verifying the names and addresses of the parties. One must also have the agreement containing the clauses that were through which such non-performance can be proved.
No set procedure is applicable in the making of a legal notice for non-performance of a contract. However, a legal notice must be drafted and signed by a lawyer, with all the necessary details/contents as mentioned above. Once the notice is drafted it should be examined by the lender. It should then be sent to the defendant. If no action is taken or no repayment is done within the number of days mentioned upon the notice, a recovery suit against the defendant can be filed in the court having jurisdiction.
There is a limitation period within which you must send the notice and file the specific performance suit. However, if there is an acknowledgment of the notice, then the limitation period will restart. The legal notice serves the purpose of giving a reasonable time to the defendant to correct things on his part. The notice also acts as valid proof before a Court of Law that a certain act/omission was done for which intimation was sent to the defendant.
While drafting legal notice, it is important to know as to what terminology should be used while drafting the same as a small ambiguity in the terms can also jeopardize the claim of the parties. This is why it is crucial to have a civil lawyer to assist you with the drafting of the legal notice. Being an expert in the area of contract law, a civil lawyer knows the nitty-gritty of the legal procedures and the requirements involved in drafting a notice. With the experience attained in the field, he/she can guide you with the right advice while drafting a legal notice and can make sure that such mistakes are eliminated that cannot be resolved even through further legal procedures.
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