Breach of Contract - Elements
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.
To win a breach of contract case, you need to prove four key elements:
- Agreement: Both parties had a proper agreement, written or spoken.
- 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.
- Breach: The other party failed to fulfill agreement terms.
- Damage: Losing money or facing financial loss due to the other party's actions
Example
You lent your cousin money with an agreement for repayment with interest in 6 months. However, your cousin failed to pay you back in full as agreed.
- Agreement: You agreed to lend $500 on 06/01/2022, with your cousin agreeing to repay $550 on 12/01/2022.
- Performance: On 06/01/2022, you sent $550 to your cousin via Venmo.
- Breach: On 02/01/2022, your cousin only gave you $300 in cash.
- Damage: You are owed $250 as your cousin agreed to repay $550 but only paid $300.
Learn more about Breach of Contract cases.
🛈 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.