Breach of Contract Cases in Small Claims Court (California)

When two parties make a promise or agreement, it's called a contract. If one party breaks the agreement, it's a breach of contract. The injured party can seek compensation through the court.

Common breach of contract examples:

Unpaid Loan: You lend money but don't get repaid.
Unpaid for Product: Selling something without receiving payment.
Unpaid for Service: Completing work without being paid.
Unhappy with Product: Purchasing a faulty item.
Unfulfilled Service: Not receiving promised service.
Unpaid Rent: Tenants failing to pay rent.
Unreturned Security Deposit: Landlord not returning security deposit.

There may be other types of less common breaches as well. For example, if someone damages your car and agrees to pay for the damage, but then doesn’t pay you, that would be a breach of contract case. Any agreement that was made but was then subsequently broken would be a breach of contract. Landlord-tenant disputes can be a bit more complicated, but they are still about broken contracts.

🛈 Note that different states may have different laws about causes of actions and elements. This article is based on California law, please review your state law.

Elements

To win a breach of contract case, you need to prove four key elements:

Agreement: Both parties had a proper agreement, written or spoken.
How to prove agreement in court.
Performance: You fulfilled your promise or had a valid reason not to due to the other party's failure to uphold their end of the agreement.
How to prove performance in court.
Breach: The other party failed to fulfill agreement terms.
How to prove breach in court.
Damage: Losing money or facing financial loss due to the other party's actions.
How to prove damages in court.

Example

You agreed to lend $500 to your cousin who promised to repay $550 in 6 months, but failed to do so. To win in court, you must prove these four elements:

Agreement: On 05/23/2022, you agreed to lend $500 on 06/01/2022, and your cousin agreed to repay $550 on 12/01/2022.
Performance: On 06/01/2022, you sent $550 to your cousin via Venmo.
Breach: On 12/01/2022, your cousin repaid you $500 in cash.
Damage: You are owed $50 as your cousin agreed to repay $550 but only gave $500.

To prove an element is true, you need evidence. Your testimony is evidence, but additional evidence is helpful. Organize your evidence by adding important events to your timeline. Examples of events and evidence can help convince the judge and prove all four elements needed to win your case.

Proving Agreement

To prove an agreement, you need evidence showing mutual agreement on specific terms. Failing to prove the agreement may lead to the other party denying the commitment.

Events for your timeline:

Written agreement (e.g. contract, lease)
Text message exchange screenshot
Email printout
Witness statement from present witness

Agreements can be implicit and proven with evidence like receipts or communication.

Example

You and your cousin agreed via text to lend $500 with a repayment of $550 in 6 months.

Proving Performance

To prove you fulfilled your agreement, you must provide evidence of your actions. This is crucial to prevent the other party from claiming non-compliance due to your alleged failure.

Events for your timeline:

Show a receipt from the other person as proof of payment.
Use a copy of your bank or payment statement to prove the money transfer.
A copy of the check can be evidence if you gave them a check.
For jobs or services, use pictures or videos to show completion as agreed.
For products, use pictures or videos to show they match the description.
For property or places provided, use pictures or videos to show the expected condition.
For rented property, use pictures or videos to show the expected condition upon return.

Sometimes, you don't have to do your part in the agreement if the other person doesn't do their part first. It's like a "give and take" situation. For example, you both signed a contract where the other party promised to fix your driveway and you promised to pay them after they completed the work. But then later, they refused to perform the work until you paid them.

Example

You Venmo’d the money to your cousin on 06/01/2022. You can use a screenshot of the transaction details as proof.

Proving Breach

To win a case, you must prove the other party failed to fulfill their promise. Without evidence of their breach, they may claim they fulfilled their obligations.

Events for your timeline:

Copies of messages where the other party admits they didn't pay you in full.
Records of bank or payment transactions showing incomplete payments.
For products, evidence that they don't work as promised.
For services, proof of work not meeting expectations.
A witness statement from a present witness when agreements were broken.

Sometimes, if someone doesn't keep their promise, they may avoid communication. It can be hard to make them admit their mistake. Keeping records of your communication attempts is important. It can demonstrate your efforts to address the problem, even if they don't acknowledge it.

Example

Your cousin gave you $500 on 12/01/2022 at a party. You asked for $50 later, but they insisted they already gave you the correct amount. A witness statement can support this.

Proving Damages

To prove the other party owes you money due to breach, demonstrate how you calculated the final amount owed. The judge will inquire about the basis of your calculation.

Events for your timeline:

Your financial statements proving the underpayment.
Copies of messages asking for correct payment.
Copies of unpaid invoices showing the amount owed.

When determining compensation for product or service damages, consider these tips:

Consult a 3rd party to estimate the cost of completing an unfinished service.
Refer to the contract for cost breakdowns to determine compensation for incomplete parts.
If a product fails before its warranty period, request a partial refund based on the time it was operational.
If additional damages occur due to someone's work, seek a cost estimate for repairs from a 3rd party.

Example

After inquiring, your cousin sends you $20. You are still owed $30. You submit evidence of the $500 provided to your cousin, and the $500 and $20 you got back, and the agreement amount of $550 to prove that you are still owed $30.