Sacramento Business Breach of Contract Lawyer

Trusted Business Breach of Contract Attorney in Sacramento

When a contract has been breached, a business may be left without the benefits they expected to get from signing the agreement. A Sacramento business breach of contract lawyer can review the terms of an agreement and assess whether there has been a breach that is strong enough to file a claim. An attorney at Asbill Law Group can analyze potential remedies under California law when a breach of contract has occurred.

Why Choose Asbill Law Group?

At Asbill Law Group, our Sacramento business law attorneys represent small and mid-sized businesses throughout the Sacramento Valley area and beyond. Our lawyers have tried cases in California state and federal courts, at both the trial and appellate levels. Rather than taking a one-size-fits-all approach, we weigh the implications of business breach of contract cases to help our clients understand their options and make informed decisions to protect their businesses.

What Is Considered a Breach of Contract?

With 533,709 employees and an annual payroll of about $38 billion, Sacramento County had 34,280 employer firms in 2023. In addition, the county has 126,634 non-employer establishments.

A party generally breaches a contract by failing to perform an obligation required by a valid agreement. A breach can occur when a contractual duty has not been performed at all, has been performed incompletely or late, or when a party does something that violates the specific restrictions of a contract.

For example, if a Sacramento-area supplier agreed to provide material to a business by a certain date but failed to deliver those materials on time, that could constitute a breach of contract. Alternatively, if a commercial customer accepted services from a contractor but refused to pay the agreed-upon invoice, this could also constitute a breach. Other examples of business breach of contract cases are listed below: 

• Violations of confidentiality clauses
• License agreements
• Exclusive dealing contracts
• Termination provisions

The materiality of a breach also matters. When a material breach is made, which would essentially defeat the purpose of a contract altogether, there’s no returning from this. However, there are instances when a failure to meet an agreement’s exact requirements doesn’t necessarily prevent the other party from continuing with their obligations.

Proving California Breach of Contract Claims

To prove breach of contract claims, California courts typically require plaintiffs to prove: a contract was in place, the plaintiff upheld their end or was released from their duties, the defendant failed to meet their contractual obligations, and this failure caused the plaintiff harm.

Part of building a strong breach of contract case involves gathering evidence to prove each of the elements mentioned above. One of the most important pieces of evidence is often the contract itself. Many breaches occur after a contract has been formed, so business records can be critical to establishing what happened after an agreement was signed.

Electronic communications can be important too. Emails and text messages can help show whether any modifications occurred or what the parties thought their contractual obligations were.

California Business Breach of Contract Laws

Essentially, California law requires four key elements for a valid contract: parties competent to enter into it, mutual consent, a lawful purpose, and adequate consideration. Whether an enforceable contract existed in the first place is a common question when one party denies the validity of an agreement.

Additionally, California Civil Code § 3300 indicates that, broadly speaking, damages must represent the sum needed to compensate the wronged party for detriment proximately caused by the breach or that would have been an expected and ordinary result of it.

Money damages are not always a remedy for breach of contract, but most often they are. Essentially, breach of contract damages seek to compensate the non-breaching party for what they lost due to the other party’s non-performance.

Hire a Business Breach of Contract Lawyer to Assist With the Legal Implications of Your Breach of Contract Case

If a contractual breach causes losses, a business may decide to hire a business breach of contract lawyer. Businesses may choose to speak with an attorney when the two parties disagree on their respective obligations under an agreement or to resolve a dispute after attempts at an informal resolution have failed.

A Sacramento business breach of contract attorney can review the parties’ contract and amendments and represent a business during litigation or arbitration. California civil litigation typically takes place at the Tani G. Cantil-Sakauye Sacramento County Courthouse, 500 G Street, Sacramento, CA 95814.

FAQs

Is an Oral Business Contract Enforceable in California?

Yes, oral business contracts are enforceable if the agreement meets the requirements for a contract. However, even if an oral contract meets the requirements to be enforced, it may be difficult to establish its exact terms without written evidence of the parties’ agreement. California’s “Statute of Frauds” (California Civil Code § 1624) does require specific kinds of agreements to be in writing, though. This includes contracts for the sale of real property or contracts that cannot be performed within a year.

Can Lost Profits Be Recovered From a Contract Breach?

Yes, lost profits may be recoverable from a contract breach, although the party generally must prove lost profits with reasonable certainty and tie them to the breach. For instance, projections of future profits, if purely speculative, might not be as convincing as evidence of actual business performance when seeking to recover lost profits. Proving lost profits often relies on evidence like past revenue, existing customer orders, sales leads, and financial statements.

What Happens if Both Parties Breached the Contract?

Contract disputes can arise where both parties may have breached their contractual obligations. If the contractual obligations were not dependent on each other, one party may be allowed to recover damages even if the other party breached. A court would look at the parties’ respective obligations, whether they were required to perform simultaneously, and whether one party’s breach excused the other party from performing.

A Sacramento business breach of contract attorney is an ideal resource for answering these questions.

Can I Still File a Breach of Contract Claim Against a Business That Closed?

Yes, you may still file a breach of contract claim against a business that closed in some situations. Just because a business closes its doors doesn’t mean it doesn’t have contractual obligations from which claims can arise. However, many factors may influence your ability to recover damages, including the closed business’s financial standing. Talk to a Sacramento business breach of contract lawyer to explore more about a specific closed business.

Speak With a Local Sacramento Business Breach of Contract Attorney at Asbill Law Group

A breach of contract dispute should be analyzed based on the plain terms of the contract and the actions of all parties. Asbill Law Group counsels Sacramento-area businesses on breach of contract cases and other commercial litigation issues. We give sound legal advice with a practical focus on your contract and financial rights. Contact us for more information.