Updated: Sep 26
A Guide To What Constitutes Breach Of Contract Claims In California
Breach of contract is one the most common cause of action in California business litigation. Several factors, however, influence how your breach of contract claims are handled by our prescreened Newport Beach Business Law Attorneys.
Here's a quick rundown of the four most important parts of a breach of contract action in California.
Contract litigation includes partnership disputes, employment contract violations, breach of lease and other real estate cases, sales transactions, promissory notes and collections, and any situation in which two or more parties have formed an agreement, either orally or in writing.
That said, you can't just file a breach of contract claim whenever and wherever you want. There must be 4 critical factors present for you to have a valid claim in California.
Let's look at what they are:
Factor #1: There Has To Be Some Form Of Contract
Organizations commonly employ written contracts to conduct their business. Despite this, parties may enter into oral agreements. This is frequently the case when there is no formal documentation but the parties participate in a pattern of activity that shows some form of agreement for both parties.
Even if no express written or oral contract exists, a court may infer a contractual relationship between the parties if one party does labor and the other begins paying for it.
To know whether your agreements qualify as a contract, consult with your Newport Beach Business Law Attorney. After all, each case is different.
Factor #2: You Complied With Your Agreed Obligations
The second part of a breach of contract action is proving that the plaintiff fulfilled their contractual obligations or had a good reason for not doing so.
The reason for this condition is that if you don't meet your contractual obligations, you can't sue someone else for breach of contract.
That said, regardless of your current situation, you should seek the advice of a Newport Beach Business Litigation Attorney.
Factor #3: One Party Violated The Agreement
The third element of a breach of contract cause of action in California is the other party's breach. The most prevalent type of breach is the failure to pay owed money. It can, however, take many different shapes.
Here's an example of a scenario:
In real estate litigation, a tenant may breach a contract by failing to keep property insurance, maintain the property as the lease requires, or follow the rules and regulations.
On the other hand, a landlord can breach a contract by failing to provide the required amenities. A leaking roof, a broken elevator, or a malfunctioning air conditioner, for example, could all be considered contract lease breaches if they are not remedied.
Breach of contract can refer to almost any agreement between the parties in which one party fails to fulfill their side of the arrangement.
Breach of an agreement between two or more parties can include:
Defective or late manufactured commodities.
A partner who fails to meet his responsibilities to the other partners.
A poorly constructed building project.
Contact one of our prescreened Newport Beach Business Attorneys if you have any questions about what constitutes a breach of contract claim in California.
Factor #4: You Incurred Losses Because Of The Breach
Finally, unless there is harm to the other party, a breach of contract does not give rise to a viable legal claim. A breach usually causes damage, such as an unpaid invoice, an unusable rented space, or even lost revenue due to the violation or breach.
In addition, depending on the circumstances, a breach of contract case may result in monetary damages, an injunction (to prevent a continuing violation), or even specific performance.
Specific performance is commonly cited in real estate disputes in California because it believes real estate to be distinctive. As a result, a breach of contract to purchase real property can be primarily fulfilled rather than just awarding monetary damages, meaning the court will order the property's sale or purchase.
Find A Breach of Contract Lawyer in Newport Beach
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