How to Claim a Refund for Breach of Contract by a Trader

When you enter into a contract with a trader - whether for goods, services or digital content - the law in England and Wales requires the trader to fulfil their obligations as agreed. If a trader fails to do so, this is a breach of contract and you may be entitled to a refund, along with other legal remedies. This comprehensive guide explains when a refund is due, how consumer law protects you, and the step‑by‑step process to pursue a refund, including options for escalation through formal complaints, alternative dispute resolution and court claims.

What Is a Breach of Contract by a Trader?

A contract is formed when:

• you make an offer to buy goods or services;
• the trader accepts that offer; and
• you both agree terms (price, delivery, description, quality).

In the consumer context, contracts between individuals and businesses are governed primarily by the Consumer Rights Act 2015 (CRA). If a trader does not provide what was promised - for example, goods are faulty, services are not delivered with reasonable care or digital content fails to meet statutory standards - they are in breach of contract and you may seek a refund and other remedies.

Your Statutory Rights Under UK Law

Consumer Rights Act 2015

The CRA gives consumers clear legal rights when a trader breaches a contract:

• Goods must be of satisfactory quality, fit for purpose and as described.
• Services must be performed with reasonable care and skill, within a reasonable time and at a reasonable price if not otherwise agreed.
• Digital content must meet standards set out in the Act.

If these standards are not met, the trader is in breach.

Under the CRA, you may be entitled to:

• a refund (full or partial);
• a repair or replacement;
• a price reduction where appropriate.

A refund must be given without undue delay and within 14 days once the trader has agreed you are entitled to it, using the same payment method you originally used unless you agree otherwise.

Consumer Contracts Regulations (Distance & Off‑Premises Contracts)

If you bought goods or services at a distance (such as online) or off‑premises (for example, in your home), separate cancellation rights may apply:

• For many distance contracts, you have a 14‑day cooling‑off period from delivery during which you can cancel and receive a refund.
• This right is separate from statutory rights under the CRA and can support a refund even where there has not been a breach of contract.

Common Examples of Breach of Contract

Examples in which a trader may be in breach include:

• Goods that are faulty on delivery or fail soon after receiving.
• Goods that are not as described or not fit for the purpose you informed the trader about.
• Services that are incomplete, poorly carried out or not delivered at all.
• Delivery outside agreed timeframes without reasonable justification.

Step‑by‑Step Guide to Claiming a Refund

1. Check Your Evidence

Keep all documentation relating to your purchase, including:

• order confirmations and receipts;
• correspondence with the trader;
• screenshots or copies of terms, descriptions or promises that formed part of the contract;
• delivery records and any evidence of defect or failure.

Accurate records form the foundation of your claim.

2. Communicate Your Complaint in Writing

Contact the trader's customer service or complaints department promptly. A written complaint should:

• describe the issue clearly and reference the contract terms breached;
• cite your rights under the Consumer Rights Act 2015;
• state that you are requesting a refund;
• set a reasonable timeframe for response (for example, 14 to 21 days).

Keep copies of all correspondence.

3. Refer to Specific Legal Rights

In your communication, reference the fact that:

• the trader must provide goods/services as promised under the Consumer Rights Act 2015;
• failure to do so amounts to a breach allowing a refund and other remedies;
• a refund must be issued without undue delay once entitlement is established.

This signals that you are asserting legal rights and not merely requesting a goodwill refund.

4. Allow Time for a Response

Traders are expected to respond and offer a resolution within a reasonable period. If the trader agrees you are entitled to a refund, they must process it promptly.

5. Use Alternative Dispute Resolution (ADR)

If the trader disputes your claim or is unresponsive, check whether they are a member of a certified Alternative Dispute Resolution scheme. ADR services can offer mediation or adjudication that may result in a binding or non‑binding decision without court involvement.

6. Prepare to Issue a Court Claim

If ADR is not available or fails to resolve the dispute, you can issue a claim through the County Court. For many consumer disputes under a certain monetary value, the Small Claims Track is a cost‑effective option where you are not required to have legal representation.

Before issuing proceedings, it is standard to send a letter before claim summarising the breach, the remedy sought and a deadline for settlement, which courts often view favourably if you later pursue litigation.

Time Limits and Practical Considerations

Limitation Period

Most civil claims for breach of contract in England and Wales must be brought within six years from the date the breach occurred. This means you generally have up to six years to claim a refund or compensation for a breach of contract.

Returns and Costs

• Under the CRA, a refund must be issued using the same means of payment unless you expressly agree otherwise.
• Traders should not impose unjust fees on refunds for breach of contract.
• In some situations, traders may request return of goods before issuing a refund; they must handle returns responsibly and cover reasonable return costs where required.

Payment Methods and Section 75

If you paid by credit card for goods costing between £100 and £30,000, you may also have rights under Section 75 of the Consumer Credit Act 1974 to claim against the card issuer for breach of contract or misrepresentation if the trader refuses to refund. This is in addition to your rights under the CRA.

Common Scenarios and FAQs

Trader Says “No Refund” Policy

A trader's internal policy cannot override statutory rights. If goods are faulty, not as described, or a service is substandard, the statutory right to a refund stands regardless of any written policy.

Late Delivery

If goods aren't delivered within the agreed timeframe and time was essential to the contract, you can treat the contract as terminated and seek a refund. Where no specific timeframe was agreed, delivery must be within a reasonable period, failing which you can similarly cancel and claim a refund.

Key Takeaways

Consumers in England and Wales have strong legal protections when a trader breaches a contract to supply goods, services or digital content. Under the Consumer Rights Act 2015, a trader must provide what was promised. If they fail to do so, you can:

• ask for a refund;
• pursue alternative remedies such as repair or replacement where applicable;
• escalate through ADR schemes;
• and, if necessary, issue a court claim to enforce your rights.

Statutory rights cannot be negated by a trader's own policies, and a refund must be issued without undue delay once entitlement is established. Keeping clear records and asserting your rights effectively improves the likelihood of a successful outcome.