Breach of contract lawsuits in California

April 23, 2013 (Press-News.org) Breach of contract lawsuits in California

Article provided by William B. Hanley, Attorney at Law
Visit us at http://www.hanley-law.com

In the world of business, agreements and contracts are signed on a daily basis throughout the state of California. In fact, individuals and businesses enter into contracts more than most people realize. Whenever someone agrees to act or make payments in exchange for something of value, a contract is formed.

While it certainly would make conducting business easier if all the obligations and requirements of a contract were fulfilled without issue, that is not always the case. Individuals sometimes decide not to abide by the requirements of a contract. When someone does not complete his contractual obligation he is said to be in breach of contract.

The law that governs contracts

In general, if a contract involves the sale of goods in California, as well as most other states, it is governed by the Uniform Commercial Code, which is a set of rules that specifically govern commerce. Most other types of contracts will be governed by California common law. The types of contracts that will be governed under state law include:
-General business agreements
-Leases
-Employment agreements

The parties to a contract should be aware that state laws, which are primarily made by judges based on court decisions rendered throughout the years, change all the time. However, when a breach of contract occurs, there are laws that can be used to resolve the issue based on the situation at hand.

What can be done if a breach occurs?

When a dispute arises over the terms of a contract, one party might decide to back out of its contractual obligations. If this happens, one of the most common methods of resolving such disputes is to take the matter to court and ask the judge to make a decision regarding the issues. When this method is elected by the parties, the court can make the breaching individual pay the non-breaching individual an amount that will put that person back in the position that he or she would have been in had the contract been honored.

Depending on the specific situation, if a breach of contract occurs, the non-breaching party might be entitled to performance of the contract, damages or a cancelation of the contract along with some form of compensation.

If a court finds that specific performance of the contract is required, that typically means that damages would not suffice as a legal remedy, and the only remedy would be to make the breaching party follow through with his duties under the contract or receive an award of damages. An award of damages by a court means that the breaching party will ultimately have to pay the non-breaching party in one form or another, and there are a variety of different types of damages that can be awarded. The cancelation of a contract voids the contract and relieves all parties involved of all contractual obligations. The non-breaching party then has a right to sue for compensation to be put back in the position it was in before the breach.

Get advice from someone who understands the complexity of contracts

All things considered, regardless of whether a party is not performing as agreed under the contract or whether the party makes it clear that it will not fulfill its contractual duties, dealing with breach of contract issues can be a tough task to take on alone. Having a skilled legal professional to assist with such issues can prove to be invaluable, particularly if the case goes to court.