How a Contract Dispute is Resolved in California

In certain business arrangements, there might be a disagreement between two or more parties. This happens most often in relation to business contracts, and a dispute can occur when something listed in a contract creates a dissension, or if one of the parties breaches their duties that were promised in a contract. California has its own set of breach of contract laws that state residents have to follow if a contract is violated.

How Can a Contract Be Breached?

A business contract creates certain duties that need to be fulfilled by all parties that enter into the agreement. If one party fails to fulfill its contractual obligations, they have breached the contract. This could happen if the party failed to perform their duty on time, did not perform their duty in accordance with the specific terms of the contract, or just didn’t perform their obligation at all. In California court, one of the first things the court will determine is if the contract actually exists, as in they want to determine if this written agreement actually is considered a valid business contract.

How is the Contract Dispute Resolved in California?

Next, a court in California will decide whether the contract that is being disputed should be enforced, which is called a contract defense. Contract defenses can help resolve the contract dispute, because they are designed to assist a party from injustice during the bargaining process of the contract. Other forms of contract defenses include signing under duress, undue influence, or misrepresentation (dishonesty) in the bargaining process.  If there is an actual defense to a contract, it can be voided, and whoever was the victim of the injustice in the dispute can revoke or cancel the contract. Another option to resolve the contract dispute is to file a lawsuit and go to court. The victim party in the dispute is entitled to three forms of remedies: damages, specific performance, or cancellation.

If you have signed or created a contract in California and you believe that the contract has been breached, our Los Angeles breach of contract attorney can help you resolve your contract dispute. Contact Kesluk, Silverstein, Jacob & Morrison, P.C. today for a free consultation.

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