“To prevail on a cause of action for breach of contract, the plaintiff must prove (1) the contract, (2) the plaintiff’s performance of the contract or excuse for nonperformance, (3) the defendant’s breach, and (4) the resulting damage to the plaintiff.” (Richman v. Hartley (2014) 224 Cal.App.4th 1182, 1186 [169 Cal.Rptr.3d 475].)
Can you explain more about the elements for a breach of contract?
The contract can be generally defined as the bargain or deal made by the parties. For example, the contract could be that John will sell Widgets for $X and Sally will pay for the widgets. The second element deals with performance by the parties who is suing. If a party is suing to enforce an agreement, they must allege (and later at trial prove) that they performed their part of the contract or were prevented or excused from performance. The final element is the damages which flow from the breach of the contract, namely the benefit of the bargain if the contract had been performed. Generally, depending on the contract terms, you may also be able to seek interest, or reasonable attorney’s fees and costs. You generally don’t get punitive damages or emotional distress damages from the mere failure to perform a contract.
Understanding the four elements of breach of contract is crucial for building a successful case. An experienced business attorney can help you evaluate whether you have all the necessary elements to prevail in your contract dispute.
How does someone show or allege what the contract is between the parties?
The first element is to prove what the contract is. A contract can be either oral, implied or written. An oral contract can still be enforceable for some types of contracts. See California Civil Code Section 1622. As to the terms of a contract which are oral or implied need to be explained in the Complaint (the main document in a lawsuit). To the extent parts of the contract are in writing, they either need to be detailed, or a copy of the contract attached as an Exhibit to the Complaint.
“It is elementary a plaintiff suing for breach of contract must prove it has performed all conditions on its part or that it was excused from performance. Similarly, where defendant’s duty to perform under the contract is conditioned on the happening of some event, the plaintiff must prove the event transpired.” (Consolidated World Investments, Inc., v. Lido Preferred Ltd. (1992) 9 Cal.App.4th 373, 380 [11 Cal.Rptr.2d 524], internal citation omitted.)
Are certain contracts required to be in writing?
Yes, according to the legal doctrine, statute of frauds, certain types of contracts are required to be writing. Otherwise, those contracts might be unenforceable in Court.
What is the statute of frauds?
One example of a statute of frauds is California Civil Code Section 1624. Under that code section, the following types of contract are invalid unless some note or memorandum in writing and subscribed by the party to be charged or by the party’s agent. This is similar to the party against whom the contract is being enforced signing the contract.
- A Contract that by its terms is not to be performed within a year of making.
- A special promise to answer for the debt, default, or miscarriage of another, except in the cases provided for in Section 2794.
- An agreement for the leasing for a longer period than one year, or for the sale of real property, or of an interest therein; such an agreement, if made by an agent of the party sought to be charged, is invalid, unless the authority of the agent is in writing, subscribed by the party sought to be charged.
- An agreement authorizing or employing an agent, broker, or any other person to purchase or sell real estate, or to lease real estate for a longer period than one year, or to procure, introduce, or find a purchaser or seller of real estate or a lessee or lessor of real estate where the lease is for a longer period than one year, for compensation or a commission.
- An agreement that by its terms is not to be performed during the lifetime of the promisor.
- An agreement by a purchaser of real property to pay an indebtedness secured by a mortgage or deed of trust upon the property purchased, unless assumption of the indebtedness by the purchaser is specifically provided for in the conveyance of the property.
- A contract, promise, undertaking, or commitment to loan money or to grant or extend credit, in an amount greater than one hundred thousand dollars ($100,000), not primarily for personal, family, or household purposes, made by a person engaged in the business of lending or arranging for the lending of money or extending credit. For purposes of this section, a contract, promise, undertaking, or commitment to loan money secured solely by residential property consisting of one to four dwelling units shall be deemed to be for personal, family, or household purposes.
The statute of frauds requirements can make or break your contract case. A knowledgeable business lawyer can help you determine whether your contract meets the necessary writing requirements and advise you on the best legal strategy.
Clients should also be advised that the law limits the time to file any lawsuit and an attorney should be consulted promptly.
Don’t Let Statute of Frauds or Missing Elements Destroy Your Contract Case
Breach of contract cases require precise legal knowledge and careful attention to procedural requirements. Whether you’re pursuing a contract claim or defending against one, understanding the four essential elements and statute of frauds requirements is critical to success.
Contact Nick Heimlich Law to discuss your contract dispute. Our experienced litigation team can evaluate your case, ensure all necessary elements are present, and develop a winning strategy for your breach of contract claim. Time limits apply to all lawsuits – don’t delay in protecting your rights and interests.
