What is a Breach of Contract?
A breach of contract is defined as a violation of a legally enforceable agreement. If you are disputing a contract with another party, it’s important to identify whether or not an official breach has taken place. More specifically, you should try to determine what type of breach it was, as this will affect how a legal dispute over the contract is handled.
The following are explanations of the different types of breaches of contract:
• Minor breach (also called partial breach or immaterial breach): The agreement between the two parties is largely honored, although the defendant fails in some minor way. The plaintiff retains the right to some form of compensation, but not necessarily to cancel the contract.
• Material breach: The person accused of breaching the contract has failed to live up to it in one or more significant ways, thus resulting in damages. In a material breach, the plaintiff is allowed to sue for damages , and the plaintiff’s obligation to fulfill the contract is suspended until the compensation is provided.
• Actual breach: An actual breach of contract is when one party does not uphold the contract terms, thus causing a disruption to the agreement. The breach is confirmed through litigation. The aggrieved party can usually recover damages in these cases.
• Anticipatory breach: If one party to an agreement informs the other that it will not follow through on its obligations under the contract, this is an anticipatory breach. The party that has been informed of the other’s intent does not have to wait for the actual breach to occur before it seeks legal remedy in such a case.
• Fundamental breach: A fundamental breach (also called a material breach) occurs when a breach deprives the injured party of substantially the same benefit it would have received had there been a full performance of the agreement’s terms.
Why You Should Hire an Experienced Attorney
Finding the right breach of contract attorney can also help you in ways that you might not expect. For one, the legal process can be particularly complex in Los Angeles, especially when the other party is from out-of-state or out of the country. Established breach of contract lawyers understand how to deal with opposition from parties who are reluctant to accept the terms of the original contract or who seek to pursue excessive damages claims. They are also familiar with handling cases involving foreign actors, which can be prohibitive for those who do not have specific experience with such disputes. Once your case is filed, your Los Angeles breach of contract lawyer can work to reach an early settlement negotiation so that no undue wastage of time and money happens on both sides. Trials can be very costly, and as mentioned above, the anonymity of parties involved can make it very difficult for a defendant to mount a proper defense. Many case settlements result in one party obtaining their portion of what was owed to them without needing to go through litigation. While hiring a standalone attorney may allow you to save some money, retaining a lawyer from a firm can provide you with access to all of the firm’s resources, officials and overall reputation to build a strong case. Overall, the complexity and unpredictable nature of breach of contract disputes makes it extremely important to get representation from a professional specializing in this area.
How to Locate the Ideal Los Angeles Lawyer
If you have already decided that you want to pursue a breach of contract claim, the next step is to hire an attorney to help you do so. It is a good idea to schedule a consultation with a few different attorneys before making a final decision. Things to consider when hiring a breach of contract attorney include:
Experience: This is probably the most important thing to look for in a breach of contract attorney. You want to find someone who has handled cases similar to yours in the past and is familiar with the relevant case law that applies to your situation. While they do not have to be an absolute expert on the topic, the more experience the attorney has the more likely you are to be able to get a favorable outcome.
Success Rate: Experience is not enough when it comes to choosing an attorney. You also want to find someone with a history of success. The past does not guarantee the future, but it is usually a good indication of how your case will play out. If you find an attorney who is getting the results you need for others in your situation, that is a pretty good sign they will be able to do the same for you.
Client Reviews and Ratings: By looking at ratings and reviews from other people who have used an attorney in the past, you can get a good idea of how they treat their clients. Finding an attorney who consistently provides a good customer experience is critical to making sure you are happy with how your case is handled. Additionally, keep in mind that the ratings and reviews will usually be a good indication of whether or not you will be satisfied with the overall outcome of your case.
Initial Consultation: The first meeting you have with an attorney is a great way to determine whether or not they are a good fit for you. Pay attention to how well you are understood and what the attorney does to let you know that they are truly interested in helping you. Remember, this is often your only chance to vet out the attorneys you are considering, so rather than just rushing through a meeting to hire the first one you met with, take your time and make sure you are making the right choice.
Common Legal Tactics in Breach of Contract Disputes
Common Legal Strategies for Los Angeles Breach of Contract Cases
As we discussed in our previous article, there are numerous ways to resolve a contract dispute. Negotiation or mediation with your legal counsel is likely to be cheaper than a trial, and easier on both parties involved. However, unsuccessful negotiation or mediation can lead to further legal action being required.
Litigation: If no amicable solution can be found through negotiation or mediation of a breach of contract claim, the case may proceed to litigation, or trial. A breach of contract case turned to litigation will require assistance from a legal professional. Two principles guide this legal strategy: "enforcement of the contract" versus "restitution for unjust enrichment." These principles are the bases for two different types of breach of contract dispute: either enforcement of the contract or restitution for unjust enrichment.
However, within these two breach of contract principles, there are two key strategies used by attorneys: compensatory damages and consequential damages.
Compensatory damages are damages that arise out of the breach of contract, and it is often not prescribed in the contract itself. But, if damages arise from a breach of contract, but are not specifically outlined in the contract, these damages are "consequential damages"-damages that uphold the contract despite the breach .
For example, if the breach of contract was in a commercial lease, resulting in monetary damages due to lost sales, the leasing party may sue for monetary damages due to the breach. Alternatively, if the lease stipulates that the lessor must make physical changes to the property, and the lessor fails to do so, the lessee may sue for monetary damages due to developing different market conditions as a result of the failure.
Under the principle of "restitution," the plaintiff will expect damages to be awarded from the defendant out of the principle of mirroring-i.e., the defendant should equally benefit from the breach. Under this principle, the defendant would have to pay restitution for contract monetary gains due to the breach of contract. Restitution for unjust enrichment requires the defendant to provide compensation for the matter in question in the case (in a simple sense, to move the matter out of the courtroom). Resitution remedies are limited to what the plaintiff has lost. In some cases, that could be monetary damages, in others, loss of opportunity.
On the other hand, compensatory damages are a measure of the "benefit of the bargain." A plaintiff seeks to compensate for losing that benefit (i.e., the matter on trial) due to the breach of contract. This measure includes consequential damages, lost profits, and others. Compensation under a breach of contract lawsuit will return the plaintiff to the position they would have been in had the contract been upheld.
Potential Results and Solutions
Remedies for breach of contract vary in severity. Some remedies are equitable, while other remedies are more monetary-based. Equitable remedies are "judicial decrees that require a party to act as the court wishes." In other words, an equitable remedy attempts to provide the plaintiff with exactly what he or she bargained for in the contract. For example, in many breach of contract cases, the plaintiff would like the defendant to be ordered to perform the services they were required to under the contract. Such a remedy is known as "specific performance."
Specific performance is a form of equitable relief available when there is no adequate remedy at law. California courts will only grant specific performance if the subject matter of the contract is unique, such as in real estate cases. Courts are less likely to grant specific performance in commercial contracts, since money damages may be adequate to compensate the damages.
Although rare, rescission is another equitable remedy available in breach of contract cases. In the context of a breach of contract, rescission essentially cancels the contract and restores the parties to the position they were in before the contract was made. A rescission makes the contract void from the beginning, rather than upon final adjudication of the case.
A breach of contract plaintiff may also be entitled to money damages. In California, monetary damages for breach of contract are typically measured by the value of the plaintiff’s loss of bargain as measured by the contract price, or the market price, which is the measure of damages as to the non-breaching party’s expectation damages. In other words, a breach of contract plaintiff will be compensated for the profits he or she anticipated to make, as well as incidental damages where appropriate. In very rare cases, consequential damages may also be available.
However, California courts will not award damages that could have been reasonably avoided by the plaintiff or that were caused by the plaintiff’s own breach of contract. For example, if the breach of contract plaintiff failed to mitigate his or her damages by seeking substitute performance, the plaintiff will be barred from recovering those damages.
If the breach of contract plaintiff is a party protected by a liquidated damages provision, he or she must show that the liquidated damages clause is reasonable before a court will uphold it. Liquidated damages are monetary damages agreed to by the parties in the contract in the event of a future breach. Courts will not uphold liquidated damages clauses that constitute a penalty for breach of the contract.
A skilled breach of contract attorney may be able to effectively pursue equitable remedies such as specific performance or money damages on behalf of the plaintiff. For example, if the breach of contract plaintiff is entitled to specific performance, his or her attorney can make a formal motion to compel specific performance by the defendant in order to force the defendant to comply with the legally binding terms of the contract.
Breach of Contract FAQs in Los Angeles
The most commonly asked questions about Los Angeles breach of contract cases are as follows:
How do I know if I have a case for breach of contract?
If you had a legally binding contract with someone and they violated the contract by not following through on their end of the deal then you have a case. The first thing to do is to revisit the contract and get legal advice on whether it is likely that you might prevail in a breach of contract claim. The longer you wait to file a breach of contract lawsuit the less likely it is that you will be able to prevail. The statute of limitations for California contracts is four years.
What is the process for filing a breach of contract lawsuit?
First meet and speak with an experienced breach of contract lawyer in Los Angeles. Then your attorney will draft and file the complaint with the courts. Once this happens , the defendant will be served with the suit. After being served they will have 30 days to respond to the lawsuit. The discovery process will then begin where both sides exchange information and evidence that will support their claims. Most cases will settle out of court before they go to trial. It is possible to settle prior to filing the lawsuit, as well.
How long does a Los Angeles breach of contract lawsuit take to resolve?
This very much depends on the conditions of the case and whether or not the other party wants to settle the matter. Some cases can be resolved in a matter of weeks; others can take years to go through the courts.
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