Breach of Contract in Ontario: Your Legal Options When Someone Breaks a Deal

When someone breaks a contract — whether it is a business agreement, a service contract, a lease, or any other legally binding promise — you may have the right to take legal action. Breach of contract is one of the most common types of civil litigation in Ontario, and understanding your options early can help you recover what you are owed.

What Constitutes a Breach of Contract?

A breach of contract occurs when one party fails to perform their obligations under the agreement without a lawful excuse. This can take several forms: failing to deliver goods or services, not paying as agreed, performing substandard work, or violating a non-compete or confidentiality clause. The breach can be a complete failure to perform or a partial or defective performance.

What Damages Can You Recover?

The primary remedy for breach of contract is monetary damages. The goal of damages is to put you in the position you would have been in if the contract had been performed. This can include expectation damages (the benefit you expected from the contract), consequential damages (foreseeable losses flowing from the breach), and in some cases, costs of completing or correcting the work. You also have a duty to mitigate — that is, to take reasonable steps to minimize your losses.

Do You Need a Written Contract?

In Ontario, verbal contracts are generally enforceable — but proving the terms of an oral agreement is much more difficult than proving a written one. If you have emails, text messages, or other communications that confirm the terms of your deal, these can serve as evidence. That said, the best practice is always to put important agreements in writing. Some contracts, such as those for the sale of land, must be in writing to be enforceable.

Limitation Periods

In Ontario, the limitation period for most breach of contract claims is two years from the date you discovered (or should have discovered) the breach. If you miss this deadline, you will likely lose the right to sue. There is also an ultimate limitation period of 15 years in most cases. If you believe someone has breached a contract with you, it is important to get legal advice promptly.

How Ken Wise & Associates Can Help

We handle breach of contract disputes for individuals and businesses across Ontario. Whether you need to enforce a contract, defend against a claim, or negotiate a resolution, Ken Wise & Associates can advise you on the strength of your case and the best path forward. Contact us for a consultation.