Everything You Need to Know About Breach of Contract Claims in Los Angeles

Updated: Apr 21

What Does A Breach Of Contract Mean For Your Business


If someone breaches a contract or accuses you of violating the terms of an agreement, a Los Angeles Business Attorney is ready to assess your situation and take strong action to preserve your rights.

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Contractual relationships are developed every day with business partners and associates, clients, consumers, vendors, service providers, product manufacturers and distributors, and a plethora of other people and businesses. Most, if not all, organizations rely significantly on a critical basic building block: a contract. When a breach of contract occurs in this building block, the entire corporate structure suffers, resulting in major financial consequences.

The formal elements of a contract have been established in California for a long time. California Civil Code 1550 was passed by the State Legislature in 1872. The following are the basic parts of a contract, according to Section 1550:

  • Those who are legally able to enter into a contract (legal capacity)

  • The parties have agreed to form a contract (there is an offer and an acceptance of that offer)

  • There is a "lawful object" to the contract (a legal purpose)

  • There is enough thought put into it.

Capacity to Enter into a Contract Legal Capacity to Enter into a Contract


Parties must have the "legal ability" to engage in a contractual agreement in order to form a legitimate and enforceable contract. The idea of "capacity" refers to whether or not a person has the ability to comprehend and accept the conditions of a contract, as well as whether or not the person is legally permitted to do so. In general, children, persons of "unsound mind," and organizations that are not in "good standing" will be judged to lack legal capacity for contract formation purposes. Without the help of an L.A. Business Attorney, matters surrounding legal capacity can get complicated.

Minors

In California, it is well-established that children are not "capable of contracting." 1556 of the California Civil Code. Anyone under the age of 18 is considered a minor. A minor lacks the legal competence to enter into a contract and be bound by it. This regulation is justified by the fact that minors are incapable of comprehending contractual agreements, as well as their rights and obligations under those conditions.

Contracts involving minors are considered "voidable." Even if a juvenile's parent or guardian signs it, the contract isn't binding on the minor. This is a "one-way regulation" in terms of the ability to enforce contracts with minors. In other words, a minor retains the perfect right to sue the other party and enforce the contract's terms.