Breach of Contract Claim in Los Angeles
Relationships in the business world usually involve some sort of contract or agreement. Whether they are between business partners, stakeholders, employees, clients, or vendors, these contracts are an essential structure to any activity in which a business is involved. Contracts are standard, and so breaches of contracts are bound to happen. Luckily, businesses are allowed to recover losses and damage caused by violations so that the actions of someone else do not threaten their entire business. The nature of the damages, which may be statutory or outlined explicitly in the agreement, is dictated by the contract. It is of the upmost importance to have a strong contract as it can protect your company from going under.
Breach of Contract in Court
Litigating a breach of contract can be a messy endeavor. The plaintiff’s attorney must prove the following:
- A legally enforceable agreement has been signed by the parties involved in the suit. This can come in different forms depending on the agreement. It can be written, oral, or implied-in-law.
- The plaintiff fulfilled all or substantially all of its contractual duties.
- The defendant had an explicitly agreed upon duty to perform or refrain from doing something in accordance with the contract.
- The defendant did not sufficiently perform their contractual duties
- The plaintiff experienced loss as a result of the failure to perform. The loss does not have to be monetary, as long as it is real and proved. Damage to a company’s reputation, the loss of trade secrets, or the loss of future opportunities are all things that might admissable.
If no losses or damages have been suffered, you will not be able to argue a breach of contract claim. So, if the circumstances end up being neutral or positive for the plaintiff, ie. if a employee quits before fulfilling their contract but is then replaced by an equal or better fit for the role, you will not be able to claim damages.
Contractual Damages for Breach of Contract Claim
When a contract is breached, the party absorbing the damage will be able to recover their loss in the following forms:
- Actual losses, such as earnings or estimated worth.
- Damages that are expected to occur in the future.
- Damages incurred as a result of the incident.
- Attorneys’ fees and litigation costs, if stated in the contract.
It can be difficult to calculate the damages caused by a contract breach. This can be true if the contract includes future commercial ventures and partnerships.The parties may agree to add a “liquidated damages clause” in these circumstances. This establishes the monetary damages that the breaching party will be liable for in the case of a breach. If this is decided in the contract, then the damages cannot be an arbitrary number. The parties must come up with an accurate way of calculating liquidated damages that reflects what they may actually be worth. These damages can only be recouped in monetary form, not through any punitive measures.
