San Diego Breach of Contract Law Firm

A contract is a legal agreement between two parties that establishes obligations for both parties. Each person or company who enters into a contract has both the duty to fulfill contract requirements and a right to expect that the other party will live up to his end of the bargain. In California, a breach of contract occurs when:

• A contract exists;
• Performance or excuse of performance by the Plaintiff​;
• Defendant's breach of duties to perform; and
• Damages to Plaintiff

Why is a breach of contract important in the context of employment?

Generally, in California, most employees are considered "at will" and an employment contract does not apply. "At will" employment means that both the employee and employer can terminate the employment relationship at any time and for almost any reason as long as it is not illegal. Some employees enter into a contract for a specific time period that explains the responsibilities of both parties and how the employment relationship ends. Employers are bound to employment contracts, policy manuals, and handbooks otherwise the employer is in breach. Once the employer is in breach of contract, employees have possible remedies to collect damages. Common damages are:

• Expectation damages

The dollar amount the employee would have received had the contract been performed minus the employees reasonable efforts to mitigate damages (i.e. looking for another job)

• Liquidated damages

These are usually rare; however, it is specific dollar amount that one party must pay the other for losses that are difficult to determine.

• Compensatory ​and punitive damages

These damages are awarded for emotional distress and are usually limited to discrimination and/or harassment cases

• Attorneys fees ​

These may be awarded if the contract states the employer must pay these fees if a breach of contract occurs otherwise you must pay your own attorneys fees.