Any time an agreement or contract is broken in the state of California, the offending party may be found guilty of a breach of contract. Breach of contract law applies to a range of agreements, including written contracts, verbal agreements, and implied agreements based on specific situations. If one party can prove that the other party’s actions caused harm, they may be positioned to win a breach of contract case.
While breach of contract laws can apply to various types of agreements, the agreement must qualify as a legally valid contract before a person can be found guilty of breaching said contract. There are five key points when it comes to developing a legally enforceable contract.
To start, the contract must represent some kind of mutual agreement. Individuals typically sign a written contract multiple times, which signifies their joint agreement regarding the contract’s contents and terms. Next, the mutual agreement must outline who is offering what and who is accepting what.
Value can be slightly more complex. Contracts defined by monetary terms are generally straightforward in this regard, but individuals may need to consult with a lawyer about the exchange of value described in other agreements. If a contract does not result in both parties deriving some form of value, the document may not be legally binding or enforceable.
A contract is only valid if all parties fully understand what they are agreeing to and are legally permitted to do so. A minor or a person without the mental capacity to enter into a legally binding agreement cannot sign a valid contract. Finally, the contract itself cannot include or call for any illegal activity. It should be noted that several types of contracts must always be writing, such as real estate contracts with terms extending beyond 12 months.
Assuming all of the above criteria have been met, two or more parties find themselves engaged in a valid contract. If at any point a party fails to fulfill their obligations or otherwise violates terms of the contract, they may be guilty of breach of contract. As mentioned, certain violations may pertain to an implied contract. For instance, if a Californian hires a contractor, the implication is the contractor will complete the project to the best of their ability. If the contractor quits the project midway through without reason, they have violated the terms of the implied contract.
Similarly, breaches of contract can occur between friends and family members. Consider a person who lends a friend or sibling $10,000, with the borrower agreeing to pay the loan back in six months. If, after the six months have passed, the borrower declines to repay the loan, they can be sued for breach of contract even without a written contract.
Just because a person or organization fails to fulfill obligations described in a contract does not mean they have breached the contract. One of the most obvious defenses is a defendant claiming that they did, in fact, live up to the terms of the contract in question. For instance, the contractor from the previous example may state that they did not walk out on the project, but instead determined additional work would need to be done. Refusing to continue the project until the client pays for the new work may not violate the original contract.
There are several additional forms of breach of contract defense. One party may claim they only breached the contract after the other party violated terms. Lawyers skilled in contract dispute resolution may be able to prove that a contract lacks essential terms, such as a definite time frame. Indefinite terms may invalidate the contract.
