How do I sue a company for breach of contract?
Asked by: Charlotte Quitzon | Last update: July 16, 2025Score: 4.4/5 (46 votes)
You can file a lawsuit to recover your damages. You begin by filing a complaint in the appropriate civil court. A complaint is a technical legal document that describes the problem and explains the case to the judge and the other party. The complaint must then be served, i.e., delivered to the defendant.
Is it worth suing for breach of contract?
The Value of the Contract: Consider whether the breach resulted in substantial financial or other losses. If the damages are minimal, the costs of litigation may outweigh the potential recovery. For example, suing over a minor inconvenience or slight delay may not be worth the effort.
What evidence is needed for a breach of contract?
Once the plaintiff proves that a valid contract existed, they must show that they upheld their part. After that, the plaintiff must show that the defendant did not fulfill their obligations. And finally there must be evidence of actual damages that the plaintiff suffered as a result.
How much can you sue for a breach of contract?
In a breach of contract case, damages typically cannot exceed four times the actual losses. However, the exact amount depends on the specifics of your case. Consult with a lawyer to determine the potential damages you may recover.
Can you sue a company for breaking a contract?
A breach of contract is when one party to the contract doesn't do what they agreed. Breach of contract happens when one party to a valid contract fails to fulfill their side of the agreement. If a party doesn't do what the contract says they must do, the other party can sue.
The Most Important Element when Suing for a Breach of Contract
What compensation can you get for breach of contract?
Compensatory Damages
Lost profits, Cost of cover (i.e., obtaining substitute goods or services), Repair or replacement costs, and. Incidental expenses incurred due to the breach.
How hard is it to win a breach of contract lawsuit?
There is ample opportunity for disappointment, which often leads to breach of contract litigation. While breach of contract happens all the time, very few cases become a winning lawsuit. Long story short, it's hard to win a breach of contract lawsuit.
Is it worth going to small claims court for $500?
Conclusion: Going to small claims court may be worth it for $500, but it will determine how you weigh your costs versus benefits. At a minimum, it is worth it to send a demand letter.
How do I sue for breach of contract without a lawyer?
Small claims court: For cases below a statutory amount that is usually less than $10,000, parties may go to court themselves and avoid hiring a contract lawyer. For small business owners, avoiding costly business litigation can be as important as winning breach of contract lawsuits.
How to file a lawsuit against a company?
To sue a company, you must file legal paperwork in the appropriate jurisdiction, which could be the court in the county where you reside or the county where the company does business. In addition, filing a complaint requires that you also pay a fee to purchase an index number for the case.
How do I file a claim for breach of contract?
You can file a lawsuit to recover your damages. You begin by filing a complaint in the appropriate civil court. A complaint is a technical legal document that describes the problem and explains the case to the judge and the other party. The complaint must then be served, i.e., delivered to the defendant.
What is the punishment for breach of contract?
As a result, the default remedy available for a breach of contract is monetary damages . Generally, these damages are limited to what is listed in the contract and, unlike damages from tort cases, courts do not award punitive damages for breaches of contract.
What actions can be taken for breach of contract?
There are three different courses of action available to the court. Firstly, damages may be awarded to put the claimant in the position they should have been in, had the contract terms been carried out correctly. Secondly, where the breach is repudiatory, the contract can be terminated. Damages may also be payable.
How long after breach of contract can you sue?
Common statutes of limitations: Personal injury: 2 years from the injury. Breach of a written contract: 4 years from the date the contract was broken. Breach of an oral contract: 2 years from the date the contract was broken.
Do I need a lawyer for breach of contract?
Don't hesitate to seek legal help if you think someone may have breached a contract with you, or if you're in the middle of an agreement dispute in California.
What is the usual remedy for breach of contract sue for?
If you successfully take someone to court for breach of contract, the most common remedy is compensatory damages. Usually, a court will order the person who breached the contract to pay you enough money that you can go elsewhere to get the services they failed to provide.
How do I claim a breach of contract?
- There is a legally binding contract. ...
- The other party has failed to perform their duties under the contract. ...
- You have suffered loss as a result of the breach. ...
- The breach occurred within the last 6 years. ...
- Collating and preserving evidence. ...
- Reserving your rights. ...
- Taking legal advice.
Can you sue an LLC for breach of contract?
Understanding the Contractual Obligations of an LLC
These obligations may include delivering goods or services, making payments, or meeting certain performance standards. If the LLC fails to fulfill these contractual obligations, you may have grounds to sue them for breach of contract.
What can a company do if you break a contract?
When another business breaks a contract, the language in the document should provide guidance on the course of action available. The remedies often involve financial damages, including actual and anticipated loss due to the breach. In some cases, you may avoid litigation through arbitration or mediation.
What happens if I sue someone and lose?
If you lose, you could be required to pay all court costs and fees, including those of the other parties. Some states, like Nevada, are "loser pays" states, meaning the loser in a lawsuit pays all court costs. If you lose a personal injury claim, you will be out of pocket for your medical expenses and other costs.
Will a collection agency sue for $5000?
Unpaid, credit card balances between $5,000 to $10,000 increase the likelihood of legal action by creditors or collection agencies. While agencies typically pursue the full amount owed, debt buyers may accept reduced payments.
Do people win in small claims court?
In fact, many small claims cases are won simply because the other side didn't show up to court. The result of a successful small claims case is a judgment—a court order requiring the other party to pay you.
How much compensation can you get for breach of contract?
Breach of contract damages generally cannot exceed four times the actual losses, but everything depends on the facts of your specific case. Your lawyer can identify whether you can recover these damages in your case.
Can you go to jail for breach of contract?
If you're thinking about breaching a contract, you should first be aware of the legal consequences that can come with it. Depending on the severity of the breach, you could be looking at anything from a small fine to jail time.
What remedy is awarded most often for breach of contract?
Compensatory damages are the most common remedy for breached contracts. These damages aim to compensate the non-breaching party for the financial losses they suffered due to the breach.