Contract Disputes & Breach of Contract in Portugal

A contract dispute in Portugal, incumprimento de contrato, arises when one side does not do what was agreed: a seller backs out of a CPCV, a builder does not finish, a supplier delivers late or a client refuses to pay for disputed work. English-speaking lawyers send the formal notice, negotiate and take the case to the justice of the peace courts or the civil courts.
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About Contract Disputes & Breach of Contract in Portugal

A contract dispute — most people search for breach of contract, some for a contractual dispute, suing for breach of contract or claiming damages — arises when one party does not do what the contract says. In Portuguese this is incumprimento de contrato or incumprimento contratual; the law distinguishes a delay (mora) from a definitive failure (incumprimento definitivo), and the remedies are performance, termination (resolução do contrato) and compensation (indemnização). Some older lists and lawyer pages call this service “Contractual Disputes”.

Who it concerns

Buyers and sellers of property whose CPCV (the preliminary contract) is not being honoured, owners whose builder or renovator has stopped work or delivered defects, foreign companies with a Portuguese supplier, distributor or client, freelancers whose contract was ended without reason, and expats whose agreement with a Portuguese business has gone wrong.

How a dispute usually goes in Portugal

  1. Reading the contract and the evidence: e-mails, invoices, photographs, expert reports.
  2. A formal written demand. In Portuguese law a delay only becomes a definitive breach, which allows termination, after the other side has been given a reasonable final deadline in a formal notice (interpelação admonitória), or when the creditor has clearly lost interest in performance. Getting this step wrong can cost the case.
  3. Negotiation or mediation; many disputes end here with a written settlement.
  4. A claim: for smaller matters the justice of the peace courts (julgados de paz) are an option, otherwise the civil courts; arbitration if the contract provides for it.
  5. Enforcement of the judgment against the losing party's assets.

Points to watch

  • Claims become time-barred, and the periods differ by type of contract; a lawyer checks this early.
  • In a CPCV the deposit (sinal) follows special rules when either side fails, and the wording decides who may walk away and at what cost; see also property purchase.
  • A contract in English can be enforced in Portugal, but the court works in Portuguese and will want translations; the governing law clause matters.
  • When the only issue is an unpaid, undisputed amount, the faster route is debt collection through the payment order procedure. Disputes about a home rental are covered under landlord and tenant disputes.

What a lawyer does

Assesses the claim and the evidence, drafts the formal notice correctly, negotiates or represents you in mediation, files and runs the case in Portuguese, and follows enforcement. A judgment from another country has to be recognised first, see enforcement of foreign judgments. A check before signing avoids most of this, see contract review.

Questions and answers

Can I sue a Portuguese company from abroad?

Yes. A lawyer acts for you under a power of attorney, and most steps do not require your presence.

What can I claim?

Depending on the contract and the breach: performance of what was promised, termination with the return of what you paid, compensation for your loss, or the agreed penalty.

Is a letter from a lawyer enough?

Often it is the step that unlocks a settlement, and in Portugal it is also the legal requirement before a delay can be treated as a definitive breach. If it is ignored, the court is the next step.

How is this different from debt collection?

Debt collection is for money owed that is not seriously disputed. A contract dispute is about whether the contract was performed at all, or properly.

5 lawyers who provide Contract Disputes & Breach of Contract in Portugal

Sorted by experience in this service. Write to any of them — the reply comes from the lawyer, without obligation.

  • Teresa, lawyer in Faro

    Teresa

    Lawyer · Faro, Portugal

    • 948 cases handled · 16 in this service
    • 16+ years in practice
    • Speaks: English, Portuguese, French
    • Law, Coimbra University
    • 4.99(60 reviews)
    Contact Teresa
  • Elsa, lawyer in Lisbon

    Elsa

    Lawyer · Lisbon, Portugal

    • 640 cases handled · 11 in this service
    • 29+ years in practice
    • Speaks: English, Portuguese
    • Law, Autonoma University Lisbon
    • 4.88(11 reviews)
    Contact Elsa
  • Carolina, lawyer in Lisbon

    Carolina

    Lawyer · Lisbon, Portugal

    • 366 cases handled · 10 in this service
    • 4+ years in practice
    • Speaks: Spanish, English, Portuguese
    • Law, University of Coimbra
    • 4.91(11 reviews)
    Contact Carolina
  • Goncalo, lawyer in Lagos

    Goncalo

    Lawyer · Lagos, Portugal

    • 55 cases handled · 5 in this service
    • 7+ years in practice
    • Speaks: English, Spanish, Portuguese, French
    • Degree in Law, Universidade de Lisboa
    Contact Goncalo
  • Jorge, lawyer in Porto

    Jorge

    Lawyer · Porto, Portugal

    • 116 cases handled · 4 in this service
    • 9+ years in practice
    • Speaks: English, Portuguese
    • Law, Coimbra
    • 5.00(6 reviews)
    Contact Jorge
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What our clients say about our service in Portugal

  • From our first conversation the lawyer proved to be conscientious, professional and motivated in representing us in our dispute with an unscrupulous property rental company. She was tenacious and ultimately achieved a satisfactory settlement for us, for a very reasonable fee. Her English was perfect throughout and the assistance faultless. She is to be highly recommended!
    — Glen
    15 Dec 2020
  • The lawyer is very good!
    — Richard
    17 Jun 2020
  • The lawyer was excellent and efficient in every way.
    — Tracey
    04 Nov 2025
    Contract Disputes & Breach of Contract
  • The lawyer is calm, savvy and highly skilled, with excellent English. She helped us settle a tricky legal problem involving a Portuguese-based removal company, guiding us through the legal, technical and cultural complexities of our claim. For us it was priceless to have such peace of mind in a stressful period. We recommend her to anyone dealing with an international or complex legal claim.
    — Krista
    15 Jul 2025
    Contract Disputes & Breach of Contract
  • The lawyer was very helpful, spoke good English and was there when needed. My small case was taken seriously.
    — Jan
    19 Feb 2025
    Contract Disputes & Breach of Contract
  • Working with the lawyer was a pleasure, and her professionalism showed throughout. We are very thankful for her expertise and for the clear, well-articulated plan of action she set out. She made the effort to understand our situation and was always on hand to answer questions. We needed her because our wedding venue had charged us extra "overage" fees after the wedding and was keeping our wedding photos as collateral. She got to the bottom of it and resolved our case.
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    12 Dec 2024
    Contract Disputes & Breach of Contract
  • I am very happy with the lawyer, who is personable and supportive, and I am still working with her.
    — Claire
    08 Nov 2024
    Contract Disputes & Breach of Contract
  • The lawyer gave us very helpful support on the company matter we approached him with. We will certainly use him for any future legal needs.
    — Aimee
    07 Nov 2024
    Contract Disputes & Breach of Contract
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    — Nathalie
    04 Nov 2024
    Contract Disputes & Breach of Contract
  • The lawyer was a great help. He replied quickly, understood our problem and was easy to work with.
    — Jonny
    27 May 2024
    Contract Disputes & Breach of Contract
  • I needed a lawyer after trouble getting a refund for a car reservation I had cancelled because of fraudulent information the car dealer had posted online. I contacted the service and my case was handled by one of its lawyers. Thanks to her action I got a relevant part of the money back within a few days, which I consider an absolute success. Dealing with her, I became firmly convinced that she is smart, excellent and reliable, a professional who comes quickly to the point. I would absolutely recommend her and the service to friends who may need legal support in Spain, and I would contact them again myself if the need arose.
    — Marco
    03 May 2023
    Contract Disputes & Breach of Contract
  • This summer a client of mine had a problem with a Catalan bank, Caixa, which had blocked his mortgage account so that he could not pay his instalments. Being a lawyer from Russia, I was unable to resolve it myself and turned to the lawyers of this service. One of them answered first, and I signed an agreement with her for legal assistance to my client. Thanks to her outstanding perseverance and the highest professionalism, the problem was solved. My client and I are entirely satisfied with her work and deeply grateful. Should I need legal help in Spain again, I will certainly turn to her.
    — Ruslan
    08 Nov 2022
    Contract Disputes & Breach of Contract