When someone breaches a contract you had, it can leave you with financial losses, stress and a lot of unanswered questions. California law offers several ways to recover what you have lost, but knowing your options is the first step toward making things right.
Under California Civil Code §3300, you are allowed to seek compensation for the damages you suffered because of the breach. It allows you to recover from any loss that naturally follows from the other person’s failure to keep their promise.
What can you actually recover?
The Golden State recognizes different types of damages when a contract is broken. What you can recover depends on the details of your situation, but the main categories include:
- Compensatory damages: They aim to put you in the same position you would have been in if the contract had been fulfilled. It includes actual financial losses and loss of expected profits, as long as they were reasonably foreseeable.
- Consequential damages: These go beyond the contract and cover losses that result indirectly from the breach. For example, if your business deal falls apart because a supplier did not deliver on time, you might recover the profits you lost because of it.
- Incidental damages: These are extra costs you paid trying to fix or reduce the damage caused by the breach, like storage fees or extra delivery charges.
- Liquidated damages: Sometimes, the contract itself says what will be paid if someone breaks it. These amounts are enforced if they are fair and not excessive.
- Punitive damages: These are rare in contract cases and only apply if fraud or intentional harm is involved.
Every case is different, and what you are entitled to will depend on your unique circumstances and the language in your contract.
If you are dealing with a breach of contract, looking for legal guidance and support is essential to help you build a strong case to recover what you have lost.