Contract Disputes in California

What Is a Breach of Contract?

A breach of contract occurs when one party fails to perform their obligations under a valid contract. The non-breaching party may sue for damages or other remedies.

Elements of a Breach of Contract Claim

1. A valid contract exists
2. The plaintiff performed (or was excused from performance)
3. The defendant breached the contract
4. The plaintiff suffered damages as a result

Types of Breach

• Material breach: A significant failure that defeats the purpose of the contract
• Minor breach: A less significant failure; the non-breaching party can recover damages but may still have to perform
• Anticipatory breach: One party indicates they will not perform before performance is due

Remedies

• Compensatory damages: Money to put the plaintiff in the position they would have been in if the contract had been performed
• Consequential damages: Additional losses caused by the breach
• Specific performance: Court order requiring the defendant to perform (rare, usually for unique goods or real estate)
• Rescission: Canceling the contract and restoring parties to their pre-contract positions