How much money can I get for a breach of contract?
Asked by: Olin Denesik | Last update: November 5, 2025Score: 4.3/5 (47 votes)
Damages and Legal Remedies For example, if you completed a job for which a contract stated you would get paid $50,000, but you only got $20,000, you could be awarded damages of $30,000. Normally, a party whose contract was breached cannot claim more than the money they were initially owed, as laid out in the 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.
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 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)
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 Can You Sue For A Breach Of Contract?
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.
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.
How do I sue 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.
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.
What is the compensation for breach of contract clause?
Standard Clause requiring the breaching party to pay a pre-determined amount to the non-breaching party as exclusive compensation for the breaching party's failure to perform a specific task or comply with a particular obligation.
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.
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.
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.
How to win a breach of contract case?
- Factor #1: A Well Written Contract. ...
- Factor #2: A Clear and Obvious Breach. ...
- Factor #3: Substantial and Identifiable Damages. ...
- Factor #4: A Defendant with Deep Pockets.
What is the award of damages 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 I sue for breach of contract in small claims court?
Breach of contract lawsuits are generally handled by your county civil court. In some cases involving parties from different states, you may be able to sue in federal court if the dispute is over a particular amount. If you are not out much money, you may be able to handle the case on your own in small claims court.
How to calculate contract damages?
These damages are designed to compensate the non-breaching party for the financial losses they incurred due to the breach. The calculation typically involves determining the difference between the value of what was promised in the contract and what was actually received.
How to prove a verbal agreement in court?
- Gathering eyewitness testimony.
- Looking at the actions taken by both parties after the verbal agreement.
- Providing documentation in the form of emails, text messages, invoices, and receipts.
- Showing the oral contract is a standard practice or industry norm.
What damages are available for breach of contract?
There are five important types of damages that might be available, depending on your situation: compensatory damages, specific performance, an injunction, liquidated damages, or rescission. If you are dealing with a potential breach of contract, you probably need legal advice on what you should do next.
How much money 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.
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.
Can you sue someone who promised you money?
The short answer is yes, you may have a claim for someone who broke a promise to you. Now, depending on the nature of that promise, we may have different types of the cause of action that could be brought. The most common that I see is a breach of contract.
How serious is breach of contract?
A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation, such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court.
How to prove breach of contract?
- The existence of a valid and binding written or oral contract between the parties.
- The plaintiff's performance, partial performance (in some cases), or excuse for nonperformance of its contractual obligations.
What are the three consequences of a breach of contract?
Legal Consequences of Breaking a Contract
You may be held liable for monetary damages if you breach a contract. There are three different types of monetary damages: expected damages, reliance damages, and restitution damages. Collectively these are known as “compensatory damages.”