Business & Contract Disputes

Orange County Business & Contract Dispute Lawyer

What is Business Litigation in California?

Business litigation is typically a legal dispute between a business and their employees, investors, partners, shareholders, other businesses, etc. These disputes can range from small business disputes to corporate/commercial disputes which require highly specialized legal assistance in order to retain the businesses future.

The most common form of legal action taken are breaches of contract. This can be a breach of contract with a distributor, investor, against your employer, against your employee, or any other business relationship that is governed by a legally binding contract. 

If you are looking to create a legally binding contract with a prospective business partner or employee please contact our experienced Orange County business legal counsel.

How Contracts Are Created in California

A contract is a legally binding agreement made between two or more parties which obligates all parties to conduct themselves in a manner consistent with the terms of their agreement. There are typically only two requirements when drafting a contract - all parties involved must be competent (mentally, physically, & must be of legal age) and the contract must be agreed upon by all parties.

There are four typical types of contracts:

  • Bilateral Contracts - are the most common form of contract that individuals enter into, parties promise to conduct themselves as outlined in the contract and it is implied that everyone will benefit from the mutual agreement.
  • Express Contracts - are straightforward agreements where an individual agrees to a set of terms and conditions (these include written & spoken agreements).
  • Implied Contracts - are similar to express contracts except these are typically legally binding obligations people enter into through actions or situations (example - it is implied that when you eat at a restaurant you will be paying for your meal).
  • Unilateral Contracts - are contracts that benefit one party through a contractual promise rather than all parties benefiting like seen in a bilateral contract (example - a missing dog reward).

Understanding Disputes & Breach of Contract in CA

Typically if one or both parties deviate from the terms and conditions outlined in the contract it can be grounds for a “Breach of Contract” lawsuit. These manifest as either material or immaterial breaches of contract. To prove a breach of contract you must prove that one party failed to perform a part of the contract AND due to their failure you have sustained damages.

  • Immaterial Breach of Contract - is a breach of contract that did NOT result in lasting damages, such as a delivery being late which causes an inconvenience.
  • Material Breach of Contract - is a breach of contract that did result in lasting damages, such as a delivery being late which causes your event to be canceled.

Breach of Contract Consequences in CA

Typically when a contract is breached the damaged party will sue the offending party for restitution and could cancel their contract all together, types of restitution that are typical in breach of contract cases are:

  • Compensatory - is when the breaching party simply pays back all damages to the non-breaching party.
  • Punitive - is when the breaching party must pay in addition to compensatory damages, this form of restitution is typically a punishment if the offending party was reckless or grossly deliberate in their breach of the contract.
  • Nominal - are extremely small repayments when no damages were proven, but a remedy for a breach of contract is required.
  • Liquidated - are damages agreed upon during the contracts formation that must be paid if a specific breach occurs, these clauses are typically created in contracts for damages that are difficult to evaluate.
  • Specific Performance - the damaged party could seek specific performance which would force the offending party to perform a specific action rather than pay damages, this is typical in unique cases such as backing out of real estate because no amount of financial damages could replicate a specific property.

For years, the law office of Harris Grombchevsky LLP has been providing Southern Californians with expert legal representation. Over the years, we have built a solid reputation throughout the area and within the legal community. We pride ourselves on placing clients’ needs first and tailoring our legal service to the unique needs and demands of the specific legal matters our clients are facing. Our Orange County business contract attorneys are not only prepared to help you create solid contracts, but protect you in matters where contracts have been breached.

We serve clients throughout Orange County in places like Riverside, Los Angeles, and San Diego. Contact us today.

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