California Breach of Contract

A breach of contract in California occurs when a party to a contract fails to perform an obligation required by the contract.

By Brad Nakase, Attorney

Email  |  Call (800) 484-4610

In California, a breach of contract happens when one party fails to fulfill their legal responsibility to the contract and the other party. For example, if the legal agreement required an electrician to fix a client’s lights, and the electrician finished the job without fixing the lights, these actions would signify a breach of contract.

For breaches of contract, California’s courts recognize two significant kinds of damage: special damages and general damages. Direct results of the violation are general damages, consisting of suffering or pain. Special damages typically consist of financial costs, such as medical bills or lost earnings.

It can prove difficult to prove that a breach of contract occurred, even if the violation was obvious to one or both parties. However, it is crucial that all business people understand what constitutes a breach of contract in California, and how to effectively deal with it. In many cases, contacting an experienced, professional attorney is the first and best step in coping with a contract violation.

In this article, our breach of contract attorney in Los Angeles explains a breach of contract in California and solutions as follows:

What Is A Breach Of Contract In California?

A contract is a lawful agreement made between two different parties. A contract also sets up duties for both parties to satisfy. Therefore, each individual involved in the contract is required to fulfill their obligations and expect the other party to do the same. This situation is where the expression “living up to your end of the bargain” originates.

Most contracts proceed without a hitch because both parties are interested in fulfilling their duties to get what they want. Unfortunately, one party is sometimes compelled to violate the contract they initially agreed upon. There are a variety of reasons that individuals breach contracts, and not all of them are nefarious in nature. However, contract violations result in numerous problems for both parties and must be dealt with promptly.

For example, if a plumber signs a contract with a homeowner to fix a plumbing problem in their bathroom, both parties agree to the terms. The plumber will provide labor and expertise, and follow through on solving the problem with the pipes and the toilet. The homeowner will pay the plumber an agreed-upon amount after the worker finishes the job; sometimes, the homeowner pays a deposit initially.

However, if the plumber fails or forgets to fix the leak, this negligent action creates problems. For one, the homeowner and their family must deal with a bathroom leak that was supposed to be fixed. Plus, the homeowner will probably refuse to pay the plumber, so the plumber will lose out on some of their income.

The question then arises: what does the innocent or violated party do in this situation? When a breach of contract occurs, what is the best course of action?

There are many available legal solutions for breaches of contract in California, and many of these remedies depend on the nature of the breach.

For example, an attorney will certainly ask early in the process whether the breach is minor or material. Or, the lawyer may discern this right from the start, after speaking with the client.

The difference between material breaches and minor violations rests in the severity of the offense. Many consider minor breaches relatively insignificant, and sometimes the decision entails continuing the contract. However, major breaches are graver in nature and often there is no way for the parties to return to the contract after major breaches occur.

When a breach of contract in California occurs, contact a trusted attorney at once for legal counsel.

What Elements Must a Breach of Contract Contain?

When one individual or entity refuses to satisfy the legal duty they agreed to, they violate their contract. Contract breaches are relatively common, but that does not make them any less damaging or difficult to deal with.

For example, let’s say that one person wants to sell their car. They place an ad online and find a buyer. Together, the seller and the buyer draw up a contract and both parties sign it.

However, when the buyer arrives to pick up the car, the seller refuses to sell the car. Perhaps the seller sold it to someone else, or perhaps he wants to keep it. The reason does not matter because the fact is that the seller violated the contract when refusing to agree to the terms of the contract he signed and sold the car.

A violation occurs when one party fails to perform the terms of a contract. When parties sign an agreement, they become bound to satisfy the terms of the agreement and, therefore, the contract. Sometimes, one person may contest that they “did not read the contract” or “did not read the agreement thoroughly,” but that argument will never stand up in court.

If one party fails to perform and satisfy the contract, the innocent party can take legal action and bring the other party to court in California. When the violated party contacts an attorney and takes the other party to court, they typically do so to collect damages in some form or another.

However, to find someone culpable for a breach of contract, the innocent party must be able to prove certain specific facts. To hold someone responsible for a contract violation, the individual and their legal counsel must be able to prove that:

  • A valid lawful contract existed
  • The innocent party did their part to satisfy their respective contract requirements
  • The offending party did not fulfill their obligations
  • The violating party’s failure to satisfy the contract terms created damages

What Solutions Exist for a Breach Of Contract?

When one party violates a contract, the innocent party has options through which to seek a remedy. These include:

  • The violated party can decide not to perform their contractual duties. For example, if the electrician decides not to fulfill the contract and fix the lights, the homeowner can decide not to pay the bill.
  • The innocent party can file a lawsuit to recover damages. Through legal action, the non-breaching party may be able to prove losses and recoup the money, sometimes more than they spent in the first place. For example, if one party can prove that they also lost valuable working time, could have sold the item to someone else, or had the work done by someone else.
  • The non-breaching party can sue not for damages but to force the other party to satisfy their obligations. For example, a car buyer could sue the owner who signed the sales contract to obtain the car.

When Should You Contact an Experienced Attorney?

At Nakase Wade, we understand that breaches of contract cause frustration and consternation. We also understand that some contract violations force innocent parties to lose valuable time, resources, and even money.

Our California business lawyers and corporate attorneys are here to help. Since contract violation solutions depend on the nature of the breach, we will recommend specific actions based on what happened. Our goal is to protect our clients, and our attorneys act quickly and decisively to protect your interests and remedy the situation.

It can be difficult to deal with contract violations, but our experienced team can make it easier. For a free consultation, contact Nakase Wade today.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment

Most recent blogs:

How To Find My EIN Number

How To Find Your Business EIN Number

Find your business EIN through IRS records, tax returns, bank documents, licensing agencies, or the IRS Business and Specialty Tax Line. Review when a new EIN is required, how applications work, and why this federal tax ID benefits business owners.
Business Acumen- Definition, Importance, and Ways to Develop It

Business Acumen: Definition, Importance, and Ways to Develop It

Business acumen combines strategic thinking, financial awareness, leadership, and market insight to support sound decisions and stronger workplace performance. Build business acumen through education, mentoring, industry research, customer feedback, and practical experience across everyday professional situations.
How to Open a Bar- Starting a Bar Business

How to Open a Bar: Starting a Bar Business

Start a California bar with practical guidance on business planning, funding, locations, licenses, permits, staffing, insurance, and opening costs. Review liquor license requirements, zoning rules, employee training, marketing strategies, and compliance steps for launching a successful bar.
What Do Corporate Lawyers Do

What Do Corporate Lawyers Do?

Corporate lawyers handle contracts, governance, compliance, transactions, and legal risks affecting a company’s operations and long-term business decisions. They also review agreements, conduct due diligence, interpret laws, and advise executives on corporate responsibilities and strategic matters.
What is a Mechanic’s Lien - Key Facts and Legal Implications

What is a Mechanic’s Lien? Key Facts and Legal Implications

A mechanic’s lien is a legal claim against property that helps contractors, subcontractors, and suppliers secure unpaid construction debts. This guide covers filing steps, enforcement, homeowner risks, and practical ways to prevent lien disputes during construction projects.
When are S-Corp Shareholders Entitled to Shareholder Distributions

When are S-Corp Shareholders Entitled to Shareholder Distributions?

S Corp shareholders may receive proportional distributions after reasonable compensation is paid and ownership percentages are properly documented. Accurate tax reporting and basis tracking help prevent penalties, payroll tax issues, and unexpected capital gains.
How to Start a Taxi Business in 2026

How to Start a Taxi Business in 2026

Start a taxi business in 2026 with market research, licensing, financing, branding, insurance, vehicles, and staffing steps. Build a stronger taxi company by choosing the right model, planning costs, and targeting profitable local passengers.
What is a Business Partnership Meaning and Types

What is a Business Partnership: Meaning and Types?

A business partnership lets two or more owners share resources, profits, losses, and responsibilities while running a company. This guide covers partnership types, advantages, drawbacks, agreements, registration steps, and tax considerations for US business owners.
What Is Gross Profit and How Is It Calculated in Financial Statements

What Is Gross Profit and How Is It Calculated in Financial Statements?

Gross profit shows how revenue compares with production costs and helps guide pricing, inventory, and cost-control decisions. Formulas, margins, and common mistakes can affect financial statements, profitability reviews, and long-term business planning.
What Is Indemnity and How Does It Apply to Insurance Contracts

What Is Indemnity and How Does It Apply to Insurance Contracts?

Insurance indemnity helps businesses cover insured losses, settlements, judgments, repairs, and legal defense costs. Indemnity coverage can protect companies from liability risks, vendor insurance gaps, and major out-of-pocket expenses.
Best Self Employment Jobs and Ideas

52 Best Self-Employment Jobs and Business Ideas

Review self-employment jobs and low-cost business ideas for starting a flexible, independent career. Compare options from tutoring and freelancing to pet care, consulting, online courses, and home-based services.
Steps on How to Start a Small Restaurant

8 Steps on How to Start a Small Restaurant

Start a small restaurant with steps covering concept, planning, location, menus, costs, funding, permits, and staffing. Build a stronger food business with practical guidance for launch, operations, marketing, and future growth.
How to Pay Yourself From An LLC

How to Pay Yourself From An LLC?

LLC owners can pay themselves through draws, guaranteed payments, salaries, or dividends based on tax classification. This article covers payment options, IRS rules, tax mistakes, and reasonable compensation for LLC members.
Elements of Libel- Definitions, Proof, and Legal Standards

Elements of Libel: Definitions, Proof, and Legal Standards

Libel claims require false published statements that damage reputation and satisfy specific legal standards of proof. This article covers definitions, defenses, damages, and how courts evaluate libel, slander, and defamatory meaning.
How to Pay Myself as a Sole Proprietor

How to Pay Yourself as a Sole Proprietor?

See how to pay yourself as a sole proprietor through owner’s draws and separate business finances. Review tax basics, records, DBAs, and payment schedules before moving money from business profits.
How to Start an Import Export Business From Home

How to Start an Import Export Business from Home?

Start an import export business from home with steps for product research, suppliers, licenses, customs bonds, costs, and marketing. Build a home-based trade company with practical tips on setup, compliance, distribution, and startup expenses.
How to Calculate Employee Turnover Rate

How to Calculate Employee Turnover Rate?

Track employee turnover rate with a simple formula that helps measure departures across your workforce. See turnover types, causes, costs, and ways companies can improve retention.
What Does 'Caveat Emptor' Mean

What Does “Caveat Emptor” Mean? Definition and Buyer Beware Rule

Definition of caveat emptor, buyer beware rules, seller duties, warranties, as-is sales, and legal options after defective purchases. See how this rule affects real estate, used cars, retail sales, and consumer protection claims.
How to Prove a Verbal Agreement in Court

How to Prove a Verbal Agreement in Court?

Prove a verbal agreement in court using witnesses, emails, payment records, and conduct showing both sides accepted the terms. See when oral contracts hold up, when writing is required, and how documentation supports your claim.
How to Start a Gym Business

How to Start a Gym Business in 2026

Start a gym business in 2026 with planning around costs, equipment, permits, insurance, pricing, and marketing. Build a fitness facility that attracts members, manages risk, and supports long-term growth from day one.
How To Buy Out a Business Partner

How to Buy Out a Business Partner?

Review how a business partner buyout works, from valuation and payment terms to legal protections and transition planning. See key steps for reducing disputes, protecting company assets, and structuring a smoother ownership change.
What Is a Notice and Acknowledgment of Receipt

What Is a Notice and Acknowledgment of Receipt?

A Notice and Acknowledgment of Receipt lets California parties serve lawsuit documents by mail instead of personal service. This guide covers the process, deadlines, rights, obligations, and business uses of acknowledgment receipts.
Advantages and Disadvantages of a Corporation

Advantages and Disadvantages of a Corporation

Review corporation benefits and drawbacks, from liability protection and tax options to costs, paperwork, and formal rules. Compare C corps, S corps, B corps, nonprofits, and closed corporations before choosing a business structure.
Which Payroll Taxes Are Paid By Employers in California

Which Payroll Taxes Are Paid By Employers in California?

California employers pay payroll taxes such as UI, ETT, FICA, FUTA, and Medicare. This article covers employer tax rates, payment deadlines, filing options, and payroll duties for California businesses.
How to file a DBA in Los Angeles

How to File a DBA in Los Angeles

File a DBA in Los Angeles County by choosing an available name, filing the FBN statement, and completing newspaper publication. Review fees, renewal terms, tax details, and filing steps for using a fictitious business name in Los Angeles.
Breach of contract California elements

Elements of a Breach of Contract in California

California breach of contract claims require proof of a valid agreement, performance, breach, and measurable damages. This article covers breach types, legal defenses, and the damages available in California contract disputes.
Steps on How to Build Business Credit

Steps on How to Build Business Credit

Build business credit with practical steps that can help your company secure financing, better vendor terms, and stronger growth opportunities. This article covers registration, reporting accounts, timely payments, and common mistakes that can hurt your business credit profile.
What is The Fraud Triangle Theory

What is The Fraud Triangle Theory?

Fraud triangle theory shows how pressure, opportunity, and rationalization can lead to fraud in the workplace. This article covers ways businesses can reduce fraud risk with internal controls, ethical culture, realistic goals, and staff support.
Businesses That Have the Highest Success Rate for Profits

Businesses That Have the Highest Success Rate for Profits

See which business ideas offer strong profit potential, lower startup costs, and room for growth in today's market. This article covers service, mobile, and online ventures that can earn more with practical planning and steady demand.
What is slander

What is Slander? Meaning, Examples, and Libel vs. Slander

Slander is spoken defamation that harms a person’s reputation through false statements presented as fact to other people. This article covers meaning, examples, defenses, and the difference between slander and libel in defamation law.

Free Consultation