BREACH OF CONTRACT – Breached Meaning? What is a Breach of Contract?
September 19, 2019
When it comes to contract disputes, clients often inquire: “what is a breach of contract?” “what does breach mean?” or …“breached meaning?” In short a breach of contract means a party to a contract failed to preform some aspect of the contract, without legitimate legal excuse. If a party to a contract fails to preform any promise that was formed as part of a contract, regardless if the contract was oral or written, then that party would have breached the contract.
Available Contract Remedies and Damages are outlined in the Contract Chart below:
|Contract Damages /Remedies:||Available if:|
|Compensatory Damages||Damages that compensate the plaintiff for the unique loss they suffered as a result of the breach of contract, which includes costs and expenses incurred as a result of the breach of contract.|
|If there is an actual loss suffered by the non-breaching party.|
|Punitive Damages||Punitive damages are only awarded to an injured plaintiff when the defendant’s conduct was despicable or reprehensible. Punitive damages are designed to punish a wrongdoer for the wrongful conduct and discourage similar conduct in the future.||There is a showing of fraud, bad faith, breach of fiduciary, oppression, deceit or malice|
|Liquidated Damages||A liquidated damages clause in a contract that specifies an amount of damages, payable to a non-breaching party in the event of a specific type of breach or failure to preform. In order for a liquidated damages clause to be found enforceable amount it must be a reasonable “estimate” of actual damages which will be sustained by a non-breaching party in the event of a breach.||(1) A liquidated damages clause is included in the agreement; and|
(2) The specific amount of payable damages is a reasonable estimate of actual damages.
|Specific Performance||In situations in which monetary damages will not make a plaintiff whole, a court may order specific performance. This requires the breaching party to perform their obligations under the contract. Specific performance is a common remedy in real estate disputes, since each piece of real property is considered unique.|
|What is bargained for in the terms of the agreement must be unique so that no award for monetary damages would suffice.|
If you have a pending contract dispute or have questions regarding a breach of contract, we encourage you to contact our offices at 619-432-5145 for a free consultation with one of our San Diego contract attorneys and California breach lawyers.