Breach of Contract
Unfortunately, in business, many matters arise that require professional legal advice, and the highest level of care.
Cate Legal Group handles many varieties of breach of contract and contract-based claims that arise in personal and business dealings. Breach of contract claims occur in many different scenarios, including various business disputes, real estate matters, personal agreements, disputed debts, and in many other instances. We prosecute and defend serious breach of contract matters in the Superior Court of California and Federal District Courts.
Breach of contract is, in essence, many times a relatively simple matter. If either party to a written, verbal, or contract implied by the conduct of the parties, fails to meet legally binding terms in an agreement, a breach of contract is said to occur. In this case, the other, aggrieved, non-breaching party has a legal claim against the party that breached the contract. Typically, an aggrieved party to a contract may be awarded money damages and other relief based on the specific situation.
Proving Your Claim: The Four Essential Elements
To succeed in a breach of contract action in California, the law requires a systematic presentation of facts. Our attorneys focus on establishing four critical pillars:
The Existence of a Valid Contract: Whether written, oral, or implied through conduct, we prove that a binding agreement was formed with clear terms and mutual consent.
The Plaintiff's Performance: We demonstrate that you fulfilled your end of the bargain—or that you had a legally valid excuse for not doing so.
The Defendant's Breach: We identify the specific failure of the other party, whether it was a total non-performance, a late delivery, or a failure to meet quality standards.
Resulting Damages: Using Civil Code § 3300, we link the breach directly to the financial harm you suffered.
California Governace
Governed by California Civil Code § 3300 et seq., breach of contract claims dealing with real estate focus on putting the non-breaching party in the position they would have been in had the contract been performed. We analyze contingency removals, deposit disputes, and liquidated damages clauses in purchase and sale agreements, and other real estate contracts, to ensure your financial interests are protected. Under Civil Code § 3300, you are entitled to "the amount which will compensate [you] for all the detriment proximately caused" by the breach. This is often categorized into three types of recovery, including: general damages, consequential damages and incidental damages.
The basic elements of a breach of contract claim under California law include the existence of a contract or agreement of the parties, performance or excuse for non-performance, breach of the contract and resulting damages. California Civil Code section 1549.
In California, aggrieved parties are entitled to specifically defined remedies for breach of contract, including compensatory damages. California Civil Code section 3300. Generally, compensatory damages include all amounts necessary to place the aggrieved party in the same position that they had been, had the breach of contract not occurred. This oftentimes includes, lost profits and other financial losses that are the "natural and direct" consequence of the breach of contract. Punitive and exemplary damages may also be awarded by the court in the event that the breach of contract was based on malice, oppression or fraud. Punitive damages must be proved with "clear and convincing evidence," which is a heightened standard of proof. California Civil Code section 3294.
Real Estate
Also, in certain real estate matters, breach of contract damages may include specific performance, compelling parties to transfer title to real property based on the contractual rights of the parties. Parcels of real estate are considered to be unique, with no two parcels being the same. As such, the law allows in many cases for damages in the form of specific performance of real estate contracts, including the forced transfer of real property rights in the event a party is not cooperative. California Civil Code section 3387.
Parties to a contract may also seek rescission in several different scenarios. These include cases where other legal remedies for breach of contract are unavailable or inappropriate, or in other instances as well, such as invalid contract formation (based on mistake, fraud, duress or undue influence). In California, many types of specific contracts automatically have a right of rescission based on statute, including certain home solicitation contracts, certain home loan agreements, and specified other types of agreements for personal services and other consumer contracts. Recission allows the party or parties to rescind the subject contract and be placed back into the position they were in, before entering into the agreement. The rescinded contract becomes void and is no longer enforceable.
Clauses
Additionally, in instances where the subject agreement contains a clause requiring an award of prevailing party attorney's fees, these fees may be awarded to the prevailing party. In California, even if the contract provision is one-sided (for instance only requiring one of the parties to the contract to be responsible for the other side's fees if they lose), the law provides that any party to the contract may obtain an award of prevailing party attorney's fees. The law defines the prevailing party in an action as the party who recovered greater relief in the contract action. California Civil Code section 1717, et seq.
It is important to seek competent legal counsel when dealing with breach of contract matters and related rights. This is especially true if you or your business has suffered substantial financial harm. If these important legal matters are not handled properly, legal rights and/or defenses may be lost forever as a result. In California, the statute of limitations runs typically two to four years from the breach of the contract, depending on the specific circumstances involved.
If you or your business requires representation with respect to a disputed or potentially disputed matter, contact us right away.