How to issue a breach notice in Australia

A deal starts to go wrong. A supplier misses delivery dates for the second time, an invoice is weeks overdue, or a contractor keeps missing agreed milestones. At that point you are usually balancing two things at once: protecting your business and keeping the relationship workable if you can.

A breach notice is the formal step that lets you do both. It puts the problem on record, gives the other party a defined opportunity to fix it, and positions your business to take stronger action — whether that is termination, a damages claim, or debt recovery — if they do not. What it does not do is automatically end the contract or initiate legal proceedings; those are separate steps that come later.

Before you start: what you need in place

Check each of the following before drafting anything.

A copy of the contract — the signed version, including any schedules, purchase orders, or statements of work that form part of the agreement.
The breach and default clause — most commercial contracts include a specific clause that says how a breach must be notified, what remedy period applies, and what rights arise if the breach is not remedied.
The notice clause — many contracts prescribe exactly how a notice must be sent (email to a nominated address, registered post, hand delivery). Serving the notice the wrong way can make it invalid.
Evidence of the breach — unpaid invoices with amounts and due dates, records of missed deliveries, written complaints about quality. The more specific and documented, the better.
Clarity on what outcome you want — payment and continuation, improved performance, or a clean exit. The wording of your notice should align with your goal.

The one that trips people up most often: skipping the breach clause and sending a notice that does not match what the contract actually requires. If the contract says 14 days' written notice by email and you send a one-line text message, the notice may not start any cure period at all.

Step 1: Read the breach and default clause carefully

Before you write a word, find and re-read the clause that deals with breach. Look for:

whether you are required to give notice before you can terminate or enforce other rights (many contracts make this a precondition);
the cure period — the time the other party has to fix the breach. Common periods are 7, 14, or 30 days, but your contract may set something different;
whether certain types of breach allow immediate termination without any cure period (serious or persistent breaches often do); and
what happens if the breach is not capable of being remedied — some contracts allow termination in that case without any notice period.

If you skip this step and send a notice that is inconsistent with the contract — for example, giving a shorter cure period than the contract requires, or purporting to terminate when you have not yet served the required notice — you can inadvertently put yourself in breach, weakening or destroying your ability to enforce your rights.

Step 2: Confirm the exact breach and gather your evidence

A breach notice needs to be factual and specific. Describe what happened, when it happened, and which contract term has been breached.

For a payment breach:

the invoice number and amount outstanding
the due date under the contract or invoice
the number of days overdue

For a delivery or performance breach:

the obligation in the contract (for example, the clause requiring delivery by a certain date or to a certain specification)
what actually occurred (non-delivery, late delivery, goods that did not meet specification)
dates and any prior communications

Avoid characterising the breach in inflammatory terms. A notice that accuses the other party of fraud or deliberate deception — without a basis for that — can escalate a fixable problem into a dispute and may expose your business to a counterclaim.

Step 3: Draft the notice

A well-drafted breach notice covers six things.

The contract details. Identify the agreement clearly: the full legal names of the parties, the date the agreement was entered into, and any reference number (purchase order, project number, statement of work).

The breach. Describe it precisely. Reference the specific clause of the contract that has been breached. Attach supporting documents where it helps (an unpaid invoice, a delivery record showing the shortfall).

What remedy looks like. Say specifically what the other party must do to fix the breach — pay the outstanding amount, re-deliver conforming goods, complete the overdue milestone, or stop using confidential information without authorisation. If the contract entitles you to interest or costs on late payment, say so.

The cure period. State the deadline. If your contract sets a specific period, use that period. If the contract is silent, the period you give must be reasonable in all the circumstances — the nature of the breach, its seriousness, and how quickly a remedy is actually possible. Giving an unreasonably short cure period (for example, 24 hours for a complex performance issue) can undermine the notice or expose you to a claim that you failed to act in good faith.

The consequences of non-remedy. Set out clearly what you will do if the breach is not remedied by the deadline. Depending on your contract and your legal rights, that may include termination of the contract, suspension of your own performance obligations, a claim for damages, or commencement of debt recovery. This is not a threat — it is notice, and it protects your position.

Method of service. Send the notice by whatever method the contract requires. If the contract requires registered post, use registered post. If it requires email to a specific address, use that address. Keep your proof of delivery — a read receipt, a registered post lodgement receipt, or a courier's delivery confirmation.

Step 4: Send and record

Once the notice is ready:

send it using the method the contract requires;
keep a copy of the notice as sent;
keep evidence that it was received or sent correctly (email delivery receipt, Australia Post tracking number); and
set a calendar reminder for the cure period deadline.

If the other party responds — even to dispute the notice — keep that communication. If the dispute escalates later, a clear paper trail of what was sent, when it was received, and what the other party said in response can significantly affect the outcome.

Step 5: Decide what to do at the deadline

When the cure period expires, you have a decision to make.

If the breach has been remedied: confirm in writing that you accept the remedy and the contract continues. This prevents any later dispute about whether the issue was resolved.

If the breach has been partially remedied or a plan has been proposed: you have a choice about whether to accept a partial remedy or a payment plan. If you do, document the new arrangement properly. A variation to a contract should be written, signed, and clear about what the original breach notice status is (for example, whether it is withdrawn or held in reserve pending compliance with the plan).

If the breach has not been remedied: you need to decide your next step — termination, further negotiation, or commencement of a recovery process. Termination is not automatic. If you intend to terminate, you must follow whatever process the contract requires for termination as well. Ending a contract by conduct (for example, simply stopping supply without further notice) can itself create a breach and expose your business to a claim for damages.

Common places people get held up

Cure period mismatch. The notice gives a period shorter than the contract requires. This is especially common when the person drafting the notice has not re-read the breach clause and has instead used a round number like "7 days" that happens not to match the contract.
Wrong service method. The contract required registered post; the notice was sent by standard email. The other party disputes that a valid notice was ever given.
Vague remedy description. The notice says "fix the problem" without specifying what a successful remedy looks like. The other party does something partial and argues it has complied.
Acting before the cure period expires. The notice says 14 days, but the sending business terminates the contract after 10 days. The purported termination is itself a wrongful act.

How to respond if you receive a breach notice

Receiving a breach notice is not the end of the relationship — but how you handle it in the first few days matters.

Do not ignore it. A breach notice almost always has a deadline attached. If you miss it without responding, the other party may be entitled to terminate the contract or take enforcement steps. Even if you believe the notice is wrong, respond before the deadline.

Review the contract and the alleged breach. Check whether the clause cited actually exists and applies to what happened. Check whether the other party has followed the correct notice procedure — if they have not, the notice may be invalid. Check whether there are limitation clauses, dispute resolution clauses, or set-off rights that are relevant.

Decide whether you can remedy. If you can fix the issue within the cure period, that is usually the fastest and cheapest path. If you cannot remedy fully, consider whether you can propose a workable plan — a payment schedule, a revised delivery timetable — and communicate that in writing before the deadline.

Respond in writing. Your response should acknowledge receipt, state your position (agreement or disagreement with the alleged breach, and why), and confirm what steps you are taking. If you disagree that you are in breach, say so clearly and briefly — but keep the tone professional. Disputes escalate faster when responses become accusatory.

Get advice before you respond if there is any uncertainty. If you are unsure whether you are actually in breach, whether the notice is valid, or whether any response might amount to an admission, a short conversation with a lawyer before you reply can prevent a manageable dispute from becoming an expensive one.

Where Artificer Legal can help

A breach notice — whether you are issuing one or receiving one — is a legal step with real consequences. Getting it wrong can extinguish rights you have or create liability you did not expect.

An Artificer Legal practitioner can:

Review the contract to identify the breach, default, and notice clauses that govern your situation, and advise on what rights you actually have;
Draft the breach notice to ensure it is properly directed, precisely describes the breach, specifies a lawful cure period, and is sent in the way the contract requires;
Review a notice you have received and advise on whether it is valid, whether you are genuinely in breach, and what defences or responses are available;
Negotiate on your behalf if the other party responds, to reach a documented resolution without the cost of formal proceedings; and
Advise on termination if the breach is not remedied, ensuring the termination is done in a way that does not itself create a legal risk.

Getting it right from the start

The single thing most likely to determine whether a breach notice process succeeds is reading the contract's breach and default clause before you do anything else. Everything else in the process — the cure period, the service method, the remedy description, the consequences — flows from what that clause says. Skipping that step and using a generic notice is the most common way businesses weaken a position they would otherwise be entitled to enforce.

In summary: a breach notice is a written notice that identifies a contractual breach, specifies how it must be remedied, gives a defined timeframe for that remedy, and explains what will happen if it is not. Issuing one correctly protects your business and preserves your options. Receiving one is an opportunity to resolve the issue before it escalates. In both cases, acting promptly, keeping records, and following the process the contract sets out are what determine the outcome.