What is a breach of contract and how is a breach of contract resolved in California?  Breach of contract simply occurs when one of the parties does not fulfill their end of a contractual agreement.  It is usually triggered by failure to perform a specific task or function or deliver specific goods or services within the established timeframe.  The easiest way to know for sure is that the timeframe is close or has already passed, or if the other party provides notice that they will not be able to fulfill their portion of the agreement.

Most business professionals will ask us something to the effect of “I just want them to do what they promised, can’t we force them to fulfill the contract?”  That is known as “specific performance” in legal terms, and it is very rare except in matters involving real estate.  If the matter does not involve a specific piece of real property, the court will want to assess and establish “damages” – a financial value for the failure to perform on the agreement and the cost to find another party to ultimately fulfill the contract services as well as any lost income or opportunity resulting from the breach.

The most realistic answer to how is a breach of contract resolved in California by the Watkins Firm is “leveraged negotiation.”  Your Watkins Firm attorneys have more than 40 years of experience in contract dispute and breach of contract cases.  We begin by developing a thorough, well-documented chronology of events, as well as amastery of associated damages.  The most timely and cost-effective strategy is often a straight forward negotiation between the parties, often coached by one of our experienced breach of contract attorneys.  Often, a demand letter from our offices outlying the issues and potential remedies is enough to let the other party know you are serious about the matter and they need to take steps to resolve the matter.

If not, your Watkins Firm attorney applies the chronology and damages to apply the leverage necessary to open negotiations.  You should be pleased to learn the Watkins Firm is able to resolve the vast majority of our breach of contract cases through leveraged negotiation.  Mediation is another effective alternative for resolving a breach of contract dispute and reaching an appropriate settlement.  Arbitration is often specified within California contracts as an alternative to trial in a Court of Law.

Pro-Tip: “A breach of a contract is when someone breaches a material term of the agreement or an immaterial term of the agreement. And you have different remedies for either. What are some examples of a material failure or a material breach? Failure to perform most of or part of the contract or an important part of a contract, anything that would render the benefit of the bargain not received.

A minor breach means that you still have a contract. You still have an agreement and you can demand performance, or you can demand that you have to give less performance on the other side, but yet the contract isn’t completely breached and it’s not over.

A material breach gives you more remedies, remedies that are important and may sound minor today. But there’s been many a situation where having a material breach gives the party who was breached or damaged the right to rescind the contract or the right to specific performance, and forced the performance of the contract. All of these things have amazing consequences, if you look at factual situations in breach of contract law.

You have what’s called choice of remedies in a material breach. The person who’s been damaged by the breaching party has all kinds of choices they can make. And depending on the kind of contract, the subject matter of contract, whether it’s a real estate contract or a commercial contract, they have the right to choose through a whole list of remedies, including provisional remedies and the list goes on and on. This is as opposed to a minor breach. Whereas your remedies are, are much less.

The primary remedy for a breach of contract is damages.  What are damages?  Great question!

When I advise my clients, I tell them the most important item in litigation is not whether you are liable or they’re liable, or somebody breached. I say the three most important things in a lawsuit are: damages damages damages.

And I say, it just like, you know, location, location, location, because it’s that important.  The type of damages you can obtain are so varied that if you focus on whether you’ve been damaged under the law, there will be a statute or a case that says you are entitled to those damages. So if you track it backwards from I lost a hundred thousand dollars in this deal and how you lost it on those facts and what you did lose, you’ll probably find 99% of the time, a statute or a law or a case or something that gives you a remedy, a right to those damages and how you can collect.

Damages are what the law can afford you in a civil case. In a criminal matter, the law can afford you incarceration of the offending criminal, but in a civil matter, since your contract and your agreement was mostly about money, then you get money back. And the only time you don’t just get money is when it’s a case where a law will afford you an injunctive or provisional remedy, which is for unique types of damages and unusual circumstances.” – Dan Watkins, Founding Partner

Are you searching for answers to what constitutes a breach of contract, or wondering how is a breach of contract resolved in California? Our clients appreciate the efficiency and cost-effectiveness with which we are able to resolve challenges and negotiate a positive resolution for all parties. We invite you to review our podcast Episode 5 – Breach of Contract as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.