Before you file a lawsuit for breach of contract in Los Angeles Court there are a few requirements to prove. In order to be successful in a breach of contract lawsuit, the Plaintiff must prove the basic elements for breach of contract, including: Whether or not a valid contract existed.
What Are The Requirements for a Contract to Be Valid?
The four basic requirements of a valid contract include the following:
- Mutual Assent. In order for a contract to be valid, there must be “mutual assent” or “meeting of the minds” Parties to a contract must manifest by the use of words or conduct that they have agreed to enter into a contract. The basic method of proving “mutual assent” is by analyzing the offer and acceptance.
- Consideration. A valid contract must also include, “consideration”, which basically means that each party to the contract must intentionally exchange a legal benefit for incur a legal detriment.
- Legality of Object. Courts will also analysis the legality of the contract. In order for a contract to be valid, the contract must not be criminal, tortious, or otherwise against public policy.
- Capacity. For a contract to be valid, the parties to the contract must have contractual capacity. For instance, minors, intoxicated persons, or incompetent persons have limited capacity to contract.
What is a Contract?
A contract is a binding agreement between two or more parties. Section 1 of the Restatement defines a contract as ‘‘a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.’’
What is Considered an “Offer” in Contract Law?
An “offer” is a manifestation of present contractual intent, communicated to an identified offeree, containing definite and certain terms. The offer element is further analyzed objectively, rather than subjectively. In order other words, for Plaintiff to prove breach of contract, s/he must also prove that the parties intended to enter into a contract.
What Laws Govern or Apply to Contracts/Agreements?
Two laws govern contract law and depending on the type of transaction or agreement parties have entered into the Courts will determine under which law governs the contracts. The two laws which govern contracts law is common law contracts and the Uniform Commercial Code.
Common Law Contracts
Most contracts are governed by state common law, such as employment contracts, service contracts, or the sale of real property.
Uniform Commercial Code Article 2 of the UCC Governs Sales of goods
The uniform commercial code “UCC” governs contracts which involve merchants engaging in the sales of goods. UCC applies to:
- Sale the Transfer of Title from Seller to Buyer
- Tangible Goods or Personal Property
Breach of Contract or Interference with Contractual Duties
When a party has breached the terms of a contract or interfered with their contractual duties they can be held liable for tort or damages caused to the other party.
Statute of Limitation for Breach of Contract in California
The statute of limitation to bring suit for breach of contract in California depends on the type of contract the parties entered to. Breach of written contract differs from oral contracts.
- Breach of a written contract: Four years from the date the contract was broken.
- Breach of an oral contract: Two years from the date the contract was broken.
If you are involved in a business dispute or breach of contract matter we invite you to speak to our Glendale business attorney today! Give us a call; our attorneys speak English, French, Spanish, Russian, and Armenian.
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