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There Are 4 Categories of Breach of Contract Per California Law

There Are 4 Categories of Breach of Contract Per California Law

Business contracts are an essential part of a well-functioning business. They outline the responsibilities and duties of each party and they offer recourse in the event that one party does not hold up their side of the contract. When the party does not do that, either by failing to comply with the contract, revealing that they do not have the intention of complying with it in the future, or, despite their best intentions, not being able to comply, then they are breaching the contract.

This can be very frustrating but there is good news: A business lawyer can help you find the solution that works for you. Continue reading to learn about the four categories of breach of contract, then contact an experienced breach of contract attorney to help you by calling Law Offices of Torrence L. Howell at (909) 920-0908.

  1. Partial / Minor Breach
  2. A partial (aka minor) breach is one in which the non-breaching party is only able to sue for actual damages – not for specific performances given. For example, let’s say a contractor agrees to use one type of tile but then uses another type during a remodel. If that tile looks the same and is of the same quality, then the homeowner would not be able to claim a partial breach since there was no damage for the breach.

  3. Material Breach
  4. This is a much more substantial breach and allows the party who has experienced a loss to sue for damages. Let’s consider the same contractor example. If the tile they used instead was fragile and immediately began cracking, then the homeowner would be able to seek compensation. This may involve either getting financial assistance to replace the tiles or getting restitution equal to the loss of value in their home.

  5. Repudiatory / Fundamental Breaches
  6. Even more substantial breaches are called repudiatory or fundamental breaches. They dramatically change the situation and allow for the party who has been harmed to use for damages and to end the terms of the initial contract. Once again considering the tile contractor, let’s say that the tile they used reacted with the countertop and resulted in mold growing throughout the home. This would be a fundamental breach. Not only did it cause a breach in the terms of the contract, but there was significant damage and health issues.

  7. Anticipatory Breaches
  8. This allows for the party who has followed the contract to look at their broken contract as an immediate situation that requires suing before the service is completed. For example, if a contractor is in the middle of remodeling a client’s home but stops showing up and won’t answer their phone, the client can end the contract immediately.

Do you have questions about these or other breach of contract cases? Contact Law Offices of Torrence L. Howell at (909) 920-0908 now to request your free legal consultation.


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