What Is a Breach of Contract in California?

A breach of contract occurs when one party fails to perform their obligations under an agreement without a legal justification. Contracts may be written, oral, or implied by conduct, as long as they include the essential terms.

Common situations include missed payments, incomplete work, project delays, use of inferior materials, misrepresentation, or interference with the other party’s ability to perform. Even a seemingly small breach can be financially damaging. Understanding the types of breaches can help determine your rights and potential recovery.

Types of Breach of Contract

Understanding the type of breach is important because it determines what remedies you can pursue, what damages may be available, and how quickly you need to act. In California, contract breaches generally fall into three categories:

Material Breach

A material breach is a significant failure that defeats the purpose of the agreement. For instance, a contractor who is paid to remodel a kitchen but walks off the job halfway has materially breached the contract because the core benefit of the deal was never delivered.

Minor or Partial Breach

A minor or partial breach involves a small deviation that does not undermine the entire agreement. For example, a business that delivers completed work a few days late may still have fulfilled the contract, but the delay could justify compensation for any losses caused.

Anticipatory Breach

An anticipatory breach occurs when one party makes it clear—through words or actions—that they do not intend to perform. A vendor notifying you that they cannot meet an upcoming delivery date before the deadline arrives is a common example.

In all cases, California law requires the injured party to take reasonable steps to mitigate damages—a concept we help clients navigate carefully to avoid mistakes.

Do I Have a Breach of Contract Case?

To pursue a breach of contract case in California, you must show:

• There was a valid contract — written, oral, or implied, with clear terms.
• You met your obligations or were ready and willing to perform.
• The other party failed to perform their required duties.
• You suffered financial harm as a result, such as added costs, project delays, or lost opportunities.

If you’re unsure whether the issue rises to a legal breach, we can evaluate the agreement and the surrounding facts.

What Damages Can You Recover for a Breach of Contract?

When a contract is broken, California law allows the injured party to recover financial losses directly tied to the breach. The type and amount of damages depend on the nature of the agreement, the severity of the breach, and the harm you suffered. Common categories of recoverable damages include:

General (Direct) Damages

The natural and foreseeable financial losses caused by a breach can include the cost of hiring someone else to complete the work, paying a higher price for replacement goods or services, or losing profits because performance was delayed or never completed.

Special (Consequential) Damages

Losses resulting from circumstances connected to the breach may include lost business opportunities, property damage, increased operational costs, and additional expenses for storage, lodging, or relocation.

Liquidated Damages

Amounts specified in the contract (e.g., $500 per day of delay). Enforceability depends on whether the amount was reasonable when agreed upon.

Punitive Damages

Generally rare in contract cases unless the breach also involves fraud or another wrongful act.

Attorney’s Fees

Available when the contract includes a fee-shifting clause or when allowed by statute. Our San Diego breach of contract attorneys calculate damages based on records, expert analysis, and industry standards to maximize your recovery.

What to Do If You Suspect a Breach of Contract

Taking the right steps early can strengthen your case:

• Gather the contract, amendments, and written communications
• Save emails, texts, invoices, receipts, and photos of work performed
• Keep notes of conversations, dates, and promises
• Do not threaten legal action before speaking with an attorney
• Avoid refusing to perform your own obligations without legal guidance
• Contact a breach of contract lawyer promptly
• Avoid making new promises, agreements, or concessions unless documented in writing.

We can assess the situation, explain your options, and intervene before the dispute escalates.

How Gomez Trial Attorneys Helps in Contract Disputes

Our firm brings proven trial experience and strategic negotiation to every case. We start by evaluating the contract, identifying potential claims, and determining the most effective path forward. Depending on the situation, this may include demanding performance or payment, pursuing negotiation, or engaging in mediation or arbitration. When necessary, we prepare and file a lawsuit and are fully ready to take your case to trial.

We apply this approach across business disputes, service agreements, real estate contracts, and consumer transactions, always focusing on efficient, cost-effective resolutions. Our litigation background, including significant settlements and verdicts in complex civil matters, allows us to negotiate from a position of strength and advocate aggressively when needed.

San Diego Breach of Contract FAQs

Can a verbal contract be enforced in California?

Yes. While written contracts are easier to prove, California recognizes verbal agreements if the terms can be established through evidence.

What if the other party claims I breached first?

California courts look closely at performance, reasonableness, and whether either party caused or contributed to the breach. We evaluate the full timeline to determine liability.

Do I need to send a demand letter?

Often yes, but you should speak with an attorney first. A poorly written demand can weaken your case or limit available remedies.

How long do I have to file a breach of contract claim?

Typically 4 years for written contracts or 2 years for oral contracts. Certain exceptions or shorter limitation periods may apply.

What if the contract has an arbitration clause?

Many contracts require arbitration instead of litigation. We can review the agreement and advise on the correct process.

What if I want the other party to perform, not just pay damages?

Specific performance is sometimes available, particularly in real estate or unique-asset contracts. We evaluate suitability on a case-by-case basis.

Do I have a duty to mitigate my damages?

Yes. California requires non-breaching parties to take reasonable steps to reduce financial harm. We explain what qualifies as reasonable mitigation and what could unintentionally hurt your case.

Speak With a San Diego Breach of Contract Lawyer

You shouldn’t be left to absorb the costs when someone breaks their promise. Gomez Trial Attorneys can review your contract, evaluate your losses, and guide you toward the strongest path forward.

Free consultation. No obligation. Call (619) 237-3490 or contact us online today.