Breach of Contract Lawyers in Pleasanton, CA

Business attorneys assist in resolving contract disputes

At Garcia & Gurney, A Law Corporation in Pleasanton, our business litigation attorneys regularly represent parties in breach of contract disputes. Sometimes we’re on the side of the aggrieved party seeking a remedy for their losses. We also represent parties who are allegedly in breach, defending them on the merits and/or mitigating damages. Whether the dispute is resolved with or without litigation, you can rely on our knowledge, experience and skill as we pursue the best possible resolution of your conflict.

What is a breach of contract?

A breach occurs when a party fails to perform a contractual duty. A breach can arise for a number of reasons, such as:

  • Substandard performance
  • Delays in performance
  • Use of substandard materials
  • Delivery of substandard goods

Breaches can be of several types, such as:

  • Material breach — This is nonfeasance that substantially impacts the value of a contract and gives grounds for termination of the deal in addition to damages.
  • Minor or partial breach — This is a violation of a term of the contract that is not fatal to the entire agreement, although it may justify damages.
  • Anticipatory — When a party realizes it cannot meet the demands of the contract, it can send notice to the other party of its intention not to perform. This can mitigate damages.

Legal strategies for addressing contract disputes vary depending on numerous factors, such as the severity of the breach, the cause of the breach, the amount of losses, the ability of the nonbreaching party to mitigate damages and the value of the business relationship between the parties.

Remedies for breach of contract: What are your options?

Breach of contract remedies are available at law or in equity, meaning the nonbreaching party can seek monetary compensation or an injunction, i.e., a court order that compels the breaching party to perform. Standard remedies include:

  • Damages — This is monetary compensation for losses. It includes general damages, described as direct losses, and special damages, which were foreseeable outcomes of a breach at the time the parties formed the contract. 
  • Liquidated damages — A contract might specify a fixed amount of damages when it appears that actual damages would be too difficult to measure. However, a liquidated damages amount must bear a reasonable relationship to the losses a party is likely to suffer. 
  • Restitution — This is an equitable remedy, by which the party in breach pays the other party as compensation for money or property that was transferred under the contract or for benefits conferred.
  • Rescission and reformation — The contract might contain vague terms that lead to misunderstandings. The parties can tear up the current contract and execute a new one or can agree to modify the agreement. A court can order rescission or reformation.
  • Specific performance — In rare cases, such as the purchase of a unique property, a court can issue an order requiring the breaching party to perform the terms of the contract.

Many contracts require parties to seek a remedy through mediation or arbitration before taking the case to civil court.

Defenses to breach of contract claims in California

California business law recognizes several defenses to breach of contract. Some common ones are: 

  • Lack of capacity — One party had no authority to enter a contract.
  • Mutual mistake — Both parties are mistaken about a material aspect of the contract.
  • Fraud or misrepresentation — A party entered the contract in reliance on a material statement that turned out to be false.
  • Impossibility — Unavoidable circumstances prevented a party from performing. 
  • Expiration — The term of the contract has ended.
  • Statute of limitations — The breach of contract lawsuit was not brought in the time required by law.

However, in most cases, a party will deny that their acts or omissions constitute a breach, or the parties will dispute the amount of damages the nonbreaching party sustained. If mediation, arbitration or other dispute resolution fails, the case may have to go to litigation.

Contact our Pleasanton business lawyers for contract services in California

The business litigation lawyers of Garcia & Gurney, A Law Corporation in Pleasanton represent clients in breach of contract cases in Alameda and throughout California. Call 925-468-0400 or contact us online to schedule a consultation.