Breach of contract is a cause of action or claim in civil litigation (lawsuits) that provides the legal basis for a person or entity to recover its damages/losses when another person or entity breaches an enforceable written or verbal agreement (contract) by breaking one or more promises in the agreement.
In California, a breach of contract occurs when one party fails to fulfill their obligations under a contract, whether it's written or verbal. To successfully claim a breach of contract in a civil lawsuit, the plaintiff must prove the existence of a valid contract, the plaintiff's performance or excuse for nonperformance, the defendant's breach, and resulting damages. California recognizes different types of breaches, such as material breaches, which significantly harm the party receiving the breach, and immaterial breaches, which may only result in minor damages. Remedies for breach of contract can include compensatory damages, which aim to put the injured party in the position they would have been in had the breach not occurred, as well as other potential remedies like specific performance or injunctive relief, depending on the circumstances of the case. The statute of limitations for filing a breach of contract claim in California is generally four years for written contracts and two years for oral contracts, starting from the date the breach occurred.