Law Advocate Group, LLP 
Contracts are the foundation of most business and personal transactions. When one party fails to uphold their end of the agreement, it results in a breach of contract. In California, breach of contract disputes are common and can lead to significant financial and legal consequences. This blog post breaks down what constitutes a breach, the types of breaches, and what you can do if you’re involved in a contract dispute in Los Angeles.
What is a Breach of Contract?
A breach of contract occurs when one party fails to perform their obligations as specified in a legally binding agreement.
Key Elements of a Valid Contract
- Offer and acceptance
- Consideration (something of value exchanged)
- Legal purpose
- Competent parties
- Mutual consent
If a valid contract exists and one party doesn’t fulfill their duties, a breach may have occurred.
Types of Contract Breaches
California law recognizes several types of contract breaches, each with different legal implications.
Material Breach
A material breach is a significant failure that undermines the entire agreement, giving the non-breaching party grounds to terminate the contract and sue for damages. For example, if a contractor fails to complete a major project on time, it may be considered a material breach.
Minor (Partial) Breach
A minor or partial breach occurs when one party fails to fulfill a small part of the contract without affecting the overall purpose. For instance, delivering goods a few days late might qualify as a minor breach.
Anticipatory Breach
An anticipatory breach happens when one party indicates they will not fulfill their contractual obligations before the deadline.
Legal Remedies for Breach of Contract
If you’re the non-breaching party, California law offers several potential remedies.
Monetary Damages
Compensation for financial losses caused by the breach, including direct and consequential damages.
- Compensatory Damages: Designed to cover the losses caused by the breach.
- Consequential Damages: Compensation for additional losses indirectly caused by the breach.
- Liquidated Damages: Pre-agreed amounts specified in the contract for breach scenarios.
Specific Performance
In some cases, the court may order the breaching party to fulfill their contractual obligations, especially in real estate transactions. This is called specific performance.
Rescission
Rescission allows the non-breaching party to cancel the contract and return to the position they were in before entering the agreement.
Cancellation and Restitution
The non-breaching party may cancel the contract and seek restitution for any benefits provided.
Read more about the potential legal remedies for a breach contract.
How to Handle a Breach of Contract
- Review the Contract: Carefully analyze the terms to understand your rights and obligations.
- Document the Breach: Keep detailed records of the breach, including correspondence, evidence, and timelines.
- Seek Legal Advice: Consulting an experienced attorney ensures you take the appropriate legal steps and maximize your remedies.
Read more about navigating a breach of contract.
The Importance of Legal Representation
Breach of contract cases often require thorough analysis and strong evidence. An experienced contract attorney can help determine your best legal strategy.
How We Help
- Review contract terms
- Assess the strength of your case
- Negotiate settlements
- Represent you in litigation if necessary
To speak with a contract attorney today, call Law Advocate Group at (310) 651-3065 or fill out the form below so that we may get in touch with you as soon as possible.
