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Breach of Contract – Business Law

Business contracts are a key component of every business and are essential in defining responsibilities and tasks to ensure that both parties are held responsible for their roles. It’s common in business that for one reason or another, one party is incapable of holding up their end of the deal, which creates a situation where they are in breach of contract.

Breach of Contract Issues:

There are three common types of breaches, each with it’s own degree of severity:

  • Total and Material Breach
  • Material BUT Not Total Breach
  • Not Material (Substantial Performance or Partial Breach)
A breach of contract can be a very frustrating situation for a business, and they can even cause major repercussions on the business. In today’s litigious society, business contracts have become far more complex, meaning that the wording of contracts, or alteration of contracts can make a significant difference on liability and responsibilities.
A Total and Material Breach of contract allows the non-breaching party to:

  1. Withhold Performance;
  2. Terminate; and
  3. Claim full damages for Breach
A Material BUT not total breach of contract allows the non-breaching party to:

  1. Suspend Performance
  2. Await Cure
  3. Claim Compensation for any loss suffered
3. NOT MATERIAL BREACH (Substantial Performance or Partial Breach)
A non-material breach of contract allows the non-breaching party to claim compensation for any loss suffered. This is to say when a party has substantially performed, the deficiency in performance s said to be a partial breach. However, the reference to total and partial breach is also used to identify a somewhat different, but related issue: A breach is called partial when, even if it may become material in time, it is not yet important enough to so qualify, because there is possibility of cure.
Breach of Contract Law


General damages flow directly and necessarily from breach of contract. In other words,  general damages are deemed to have been contemplated by the parties at the time of entering into the contract since their occurrence is deemed predicable if contract is breached.
Special damages, on the other hand, do not necessarily flow from breach of contract. Special damages arise from particular circumstances of the parties or of the particular contract. To recover special damages, the special circumstances must have been communicated to or known by the defendant, or the defendant should have become aware of such special circumstances when the contract was entered into.

How a Business Attorney Can Help YOU

All business owners should seek the legal consultation of an experienced business law attorney, who has the knowledge and experience in dealing with business contracts. Our lawyers can consult with you before the signing of any business contract or during the formation of a contract. If you are facing litigation issues, do not hesitate to contact us as we have had extensive experience in business litigation and can help you seek the right solutions to your problems. In your consultation we will be able to determine the right legal strategy and uncover the necessary facts to determine the next course of action.
Mediation is one of the most commonly used techniques to solve business disputes, although it does not always solve the issues at hand. If arbitrations fail as well or are not recommended, then litigation may be the best answer. Our litigation experts have the skills necessary to help you achieve a successful outcomes, such as financial compensation for damages or restitution for losses, through business litigation.
We understand the importance of time and the financial hardships that can arise from legal issues. Our team is mindful of building a cost effective strategy during the course of your case.
Our Breach of Contract Lawyers are accessible 

Our firm is based in Beverly Hills, Los Angeles where our lawyers have acquired over 80 years of combined experience in legal representation. Our skills and knowledge are a top resource for our clients that has been recognized by industry peers and judges. If you have a business matter specifically involving a breach of contract, please take a moment to fill out the form below so that we may get in contact with you.

Our Business Lawyers in Los Angeles can help you with a variety of issues pertaining to Breach of Contract Law. To speak with a knowledgeable business law attorney today visit our contact page to initiate the first steps to legal consultation in Beverly Hills, Orange County or L.A. County.
Breach of Contract Law Firm in Beverly Hills, Los Angeles, CA
Request a free phone consultation with our Los Angeles Breach of Contract Law Firm in Beverly Hills, CA. 855-598-3258