Notice To Remedy Breach Explained: Australian Contract & Lease Guide

If a counterparty isn’t doing what they promised under a contract or a commercial lease, a Notice to Remedy Breach is often the first formal step to get things back on track in Australia.

Handled well, it can resolve the issue quickly and preserve the relationship. Handled poorly, it can derail your rights to terminate or claim losses later.

In this guide, we’ll explain what a Notice to Remedy Breach is, when to use it (for both contracts and commercial leases), what to include, how to serve it properly, and what your options are if the breach isn’t fixed in time.

What Is A Notice To Remedy Breach?

A Notice to Remedy Breach (sometimes called a “default notice” or “breach notice”) is a written notice telling the other party that they’ve breached the agreement, what needs to be fixed, and the timeframe to fix it.

It’s not just a formality. The notice protects your rights because many contracts and leases require you to give the other party a chance to fix the problem before you can terminate or enforce certain remedies.

In plain English, the notice should:

• Identify the agreement and the specific clause(s) breached.
• Describe the conduct or omission that amounts to a breach.
• State what needs to happen to fix it (the “remedy”).
• Set a clear deadline to remedy (for example, “within 14 days of receipt”).
• Warn what will happen if it isn’t fixed (such as termination or further action).

For general contract disputes, this step usually sits alongside your broader breach of contract strategy. For leases, there are often extra, state-based rules to follow before you can re-enter or terminate, so precision matters.

When Do You Use It In Australia? (Contracts And Commercial Leases)

You can use a Notice to Remedy Breach in most situations where the other party isn’t meeting their obligations and your agreement (or relevant law) requires notice before stronger action is taken. Below are the most common scenarios.

Under Commercial Contracts

Typical examples include unpaid invoices, missed milestones in a services agreement, IP misuse, or confidentiality breaches.

Most well-drafted contracts contain a “default” or “breach” clause that states you must issue a breach notice and allow a specified remedy period (e.g. 7, 14 or 30 days), except in serious cases where immediate termination is permitted (such as insolvency or material non-compliance).

Under Commercial Leases

For leases, the most common breaches are non-payment of rent, outgoings or utilities, unauthorised alterations or use, or failure to maintain the premises. Your lease will set out the process to issue a breach notice and the timeframe to fix the problem.

In addition to the lease terms, Australia’s retail and commercial leasing laws (which differ by state) often require specific content, timelines and service methods before a landlord can take enforcement steps. This is why it’s important to check your lease and any applicable legislation early.

If you’re negotiating or renewing a lease now, a strong, balanced Commercial Tenancy Agreement helps avoid disputes and makes the process around breach notices much clearer when things go wrong.

Where the relationship can’t be salvaged, landlords and tenants should understand the rules around lease termination notices in NSW and similar requirements in other states before taking irreversible steps.

How To Draft A Notice To Remedy Breach (Step-By-Step)

A clear, compliant notice is critical. Here’s a practical drafting checklist you can adapt to your contract or lease.

1) Pull The Right Documents And Check The Rules

• Read the entire contract or lease, especially the breach, default, notices and termination clauses.
• Note any specific timeframes, wording, or “cure” steps the agreement requires.
• If you’re dealing with a lease, check any state-based retail or commercial tenancy requirements for breach notices.
• Confirm if there are pre-conditions to enforcement (for example, mediation steps or multiple notices).

2) Identify The Breach Precisely

• Use the agreement’s exact title and date, and the parties’ names as they appear in the document.
• Cite the clause(s) breached and describe the conduct simply and factually (who, what, when).
• Attach supporting evidence where helpful (for example, outstanding invoices, email correspondence, photos).

3) State The Remedy And Deadline Clearly

• Specify what “remedy” means in your context: pay a sum, stop an action, perform a task, or repair damage.
• Set a reasonable (or contractually required) period to remedy. Avoid vague phrases like “as soon as possible”.
• Make the deadline unambiguous: include a date and the time zone (e.g. “by 5:00pm AEST on 22 March 2025”).

4) Explain Consequences Of Non-Compliance

• Refer to the rights you may exercise if the breach is not remedied by the deadline, such as suspension of services, re-entry, termination, recovery of losses or calling on security.
• Stay measured. You don’t need to threaten every possible remedy-just enough to be clear and accurate.

5) Include Contact And Payment Details

• Tell the recipient how to remedy practically (for example, bank details for payment or access times for repairs).
• Include a direct contact person to avoid delays or confusion.

6) Check Format And Service Requirements

• Ensure the notice is on your letterhead (or includes your full legal name, ABN/ACN and contact details).
• Sign it per the agreement’s requirements (for companies, consider execution conventions-many agreements allow an authorised representative to sign).
• Follow the “Notices” clause strictly for delivery method and deemed receipt timing.

Common Drafting Mistakes To Avoid

• Being vague about what the breach is and how to fix it.
• Using the wrong timeframe (shorter than what the agreement or law requires).
• Serving the notice in a way the agreement doesn’t recognise.
• Skipping required pre-steps (for example, a warning notice or mediation step in the agreement).

If the breach notice is defective, you can lose the right to terminate or your enforcement could be challenged later. A quick review by a leasing or contracts lawyer can save you a costly reset. For lease disputes, a tailored Commercial Lease Review will confirm your notice and next steps line up with both the lease and local law.

Serving The Notice: Timeframes, Methods And Proof

Even a perfectly drafted notice won’t help if it isn’t served correctly. The notices clause usually sets out how you must deliver formal notices and when they’re deemed received.

Choose An Approved Method

• Most agreements allow delivery by hand, post, or email. Some restrict email to specific addresses.
• If the notices clause is strict (for example, “hand delivery only”), follow it. Don’t assume email will be valid.
• Where allowed, consider sending by two methods (e.g. email and express post) to reduce disputes about receipt.

Count The Remedy Period Correctly

• Check how the agreement calculates days (calendar days vs business days) and when a notice is deemed received.
• If a due date falls on a weekend or public holiday, consider moving your deadline to the next business day for clarity.

Keep Robust Evidence

• Retain postal receipts, courier tracking, read receipts or delivery confirmations.
• Keep a clean copy of the served notice and all attachments, with the date and time sent.
• If delivered by hand, ask the recipient (or their representative) to acknowledge receipt in writing.

After The Deadline: Termination, Damages And Alternatives

Once the remedy period expires, you’ll typically have a few options. Your exact rights depend on the agreement and applicable law.

If The Breach Is Remedied In Time

• Confirm in writing that the breach has been remedied and the matter is resolved (without waiving future rights).
• If there are repeat breaches, you may need to escalate, renegotiate stricter terms, or explore exit options.

If The Breach Is Not Remedied

• Terminate under the agreement. If your agreement allows, you can end the contract or lease by issuing a termination notice that references the unremedied breach and your termination clause.
• Claim losses. You may seek to recover losses caused by the breach (subject to the contract’s limitations of liability). Keep records of the costs you’ve incurred.
• Enforce lease remedies. For leases, consequences can include re-entry, drawing on a bank guarantee, or ending the lease-provided you’ve followed the required breach and termination steps. Be mindful of state-based leasing laws and any procedural protections for tenants.

If the relationship has broken down, there are structured exit pathways. For leases, read up on legal ways to break a lease to avoid missteps that trigger unnecessary liability. In general contracts, parties often document an agreed exit through a Deed of Termination.

Consider Negotiated Outcomes

Not every dispute needs to end in termination. It’s common to resolve matters by agreeing on a payment plan, variations to timelines, or a mutual release of claims.

• Where money is owed, agree on dates, amounts, and consequences for missed payments.
• Where works are incomplete, set specific milestones and access requirements.
• Where both parties want a clean break, document it clearly.

To settle and release claims safely, many businesses use a Deed of Settlement that records the agreed obligations, releases and confidentiality terms.

Landlord-Tenant Angle: Extra Care With Enforcement

Lease enforcement is technical. A misstep can invalidate your enforcement or expose you to claims, especially in retail leasing contexts. If you’re moving toward termination or re-entry, align your strategy with the lease and any state legislation, and consider whether a negotiated surrender or assignment might be more cost‑effective than a contested termination.

When in doubt, get advice early-especially before issuing termination or commencing enforcement. Your next steps should dovetail with your lease terms, local law, and practical business considerations (like downtime, re-letting prospects and security recovery).

FAQs: Practical Questions We Hear From Business Owners

How Long Should I Give To Remedy?

Start with the timeframe in your contract or lease. If it’s silent, choose a reasonable period given the breach type. For unpaid rent or invoices, 7-14 days is common; for complex performance breaches, more time may be appropriate. Leases and some laws may prescribe minimum periods, so check carefully.

Can I Terminate Immediately For A Serious Breach?

Sometimes. If your agreement allows immediate termination for “material” breaches or insolvency, you may not need to give a remedy period. That said, many disputes revolve around whether the breach was “material”. If you can safely provide a short remedy window, it can reduce the risk of a wrongful termination claim.

Do I Need A Specific Template?

There’s no one-size-fits-all template that works for every contract or lease. Your notice needs to reflect the exact obligations, breach and cure steps in your agreement, plus any state-based requirements for leases. If you’re unsure, have a lawyer check your draft before sending.

What If The Notices Clause Lists An Old Address?

You generally need to use the addresses or email listed in the agreement unless both parties have updated them formally. If in doubt, serve to the nominated address and any new address you know, to reduce the risk of disputes about receipt.

What If We’re In The Middle Of Negotiations?

You can still preserve your rights by serving a compliant notice while you continue to negotiate. Make it clear that issuing the notice is without prejudice to ongoing discussions. If you agree on a resolution, document it properly so your position remains protected.

Putting It All Together: A Quick Example

Let’s say your tenant is two months behind on rent. Your lease requires a written breach notice with at least 14 days to remedy before you can terminate.

Your notice would identify the lease, detail the overdue rent (including dates and amounts), specify the remedy (pay outstanding rent plus outgoings by a fixed date), and warn that if payment isn’t received, you may terminate the lease and call on the bank guarantee.

You’d serve it strictly per the notices clause. If payment arrives on time, you confirm the breach is remedied. If not, you follow your lease’s termination process and any state-based requirements. If termination is on the table, review your state’s rules and your lease carefully and consider whether a negotiated surrender documented through a settlement deed is more commercial than a contested exit.

Key Takeaways

• A Notice to Remedy Breach is a formal step that preserves your rights and often must be issued before termination or stronger remedies are available.
• Tailor your notice to the agreement: identify the clause breached, the facts, the exact remedy, a clear deadline, and the consequences of non-compliance.
• For leases, follow both the lease terms and any state-based retail or commercial tenancy rules-procedural missteps can undermine enforcement.
• Serve the notice exactly as the contract or lease requires and keep solid proof of delivery and timing.
• If the breach isn’t remedied, options include termination, claiming losses, or a negotiated path such as a Deed of Settlement or Deed of Termination.
• When negotiating or renewing a lease, ensure your Commercial Tenancy Agreement sets clear default and notice mechanics to reduce future disputes.
• If you’re considering ending a lease, understand your obligations around lease termination notices in NSW and check the rules in your state. Where appropriate, explore legal ways to break a lease to manage risk.

If you’d like a consultation on drafting or responding to a Notice to Remedy Breach for a contract or lease, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.