How much can you sue for breach of contract?

Asked by: Augustine Grant  |  Last update: March 4, 2025
Score: 4.1/5 (26 votes)

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.

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.

How much compensation can you get for a 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.

What is the penalty 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 is the compensation for breach of contract?

When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the ...

The Most Important Element when Suing for a Breach of Contract

39 related questions found

Can you get money for a breach of contract?

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 to calculate damages for breach of contract?

general expectation damages = the value of performance without the breach (what was promised) minus the value of performance with the breach (what was received)

How to win a breach of contract suit?

You may be sure you have an air-tight case, and you may be right, but a winning breach of contract lawsuit has four factors.
  1. Factor #1: A Well Written Contract. ...
  2. Factor #2: A Clear and Obvious Breach. ...
  3. Factor #3: Substantial and Identifiable Damages. ...
  4. Factor #4: A Defendant with Deep Pockets.

Can you go to jail for a breach of contract?

Contract law disputes that end up in court are litigated as civil cases. That is, they involve a disagreement between private parties as opposed to society as a whole. Therefore, someone who breaches a contract will not go to jail for that breach.

How much does a breach of contract cost?

The breach of contract cost comprises compensatory damages that a party pays to another for failing to abide by certain terms and conditions. A court orders a particular person who breached the contract to pay the other party enough money to go elsewhere to get the services.

Can you sue for pain and suffering for breach of contract?

They are often frustrated to learn that pain and suffering damages are not permitted for breach of contract cases in California. An award of damages for breach of contract is intended to give the injured party the benefit of his bargain.

How to calculate actual damages?

When calculating actual damages, courts will often look at the fair market value of destroyed/damaged property, lost wages/income, and necessarily incurred expenses.

What is a reasonable breach of contract?

This failure can take various forms, such as failing to deliver goods or services as promised, not completing work within the agreed timeframe, delivering defective or substandard goods, or not paying for goods or services rendered. For a breach of contract to occur, a contract must have existed in the first place.

How much money can you sue for 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.

Is breach of contract hard to prove?

The short answer is yes. Breaches of oral contracts are harder to prove, but the contracts are absolutely enforceable. Breach of oral contract elements are the same as for written contracts. The hardest part of proving a breach of contract for an oral agreement is proving that the contract existed and was valid.

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.

Will they sue me for breach of contract?

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.

How serious is breach of contract?

The Legal Consequences of Breaching a Contract

Depending on the severity of the breach, you could be looking at anything from a small fine to jail time. If you're found guilty of breaching a contract, the court will order you to pay damages to the other party.

What are the damages for breach of contract?

  • Compensatory Damages. Compensatory damages compensate the non-breaching party for the actual financial losses suffered as a direct result of the breach of contract. ...
  • Consequential Damages. ...
  • Incidental Damages. ...
  • Punitive Damages. ...
  • Nominal Damages.

How long does a breach of contract lawsuit take?

Typically, it can take months or even years for a case to work its way through the court system. The breach of contract claim must be filed with the court and supported with appropriate legal documentation. The defendant must be notified of the lawsuit and given time to answer.

What do you need to prove for a breach of contract?

The relevant criteria are:
  1. There is a legally binding contract. ...
  2. The other party has failed to perform their duties under the contract. ...
  3. You have suffered loss as a result of the breach. ...
  4. The breach occurred within the last 6 years. ...
  5. Collating and preserving evidence. ...
  6. Reserving your rights. ...
  7. 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 compensation can you get for breach of contract?

An award of compensatory damages is the most common of the legal remedies for breach of contract. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract. They typically fall into two categories: expectation damages and consequential damages.

Can you get punitive damages for breach of contract?

App. Div. 1998) ("While punitive damages are usually not awarded in litigation involving breach of a commercial contract, they may be awarded where there is a breach of trust between the parties beyond the contractual breach.

What is reasonably foreseeable damages?

What is Reasonable Foreseeability in Damages Law? Reasonable foreseeability is a set of common law principles which operate to limit compensation recoverable by an innocent party for breach of contract and for tortious loss.