Construction Law Is All We Do
Call now: 949-751-6389
We are good at what we do, because Construction Law is All We Do
View Our Practice Areas

Damages for breach of contract in California

Most California businessmen understand that a breach of contract may entitle them to recover damages or may expose them to a lawsuit aimed at recovering damages caused by the breach. However, very few business owners understand how much or how little money may actually be recovered if a contract dispute results in a lawsuit.

The general rule is that a party to a contract is entitled to recover damages equal to the reasonably foreseeable losses caused by the breach. To put it a bit differently, damages are intended to restore the harmed party to the same position he or she would have occupied if the other party had performed as promised. Breach of contract damages are not - except in very rare situations - intended to punish the breaching party.

If the contract involves improvements to real property, the damages may be measured by the difference in the value of the property if the work had been completed less its current value. If the owner of the property elects to finish the improvements, damages are usually measured by the difference between the contract price of the work and the amount paid to complete the work. A party can recover lost profits caused by the breach if it can prove that such profits were reasonable certain to be earned if the breach had not occurred.

A single blog post cannot hope to cover the entire subject of determining damages for breach of contract, but the foregoing general principles apply to almost every such case. Anyone considering bringing a suit for breach of contract, or anyone who is defending such a suit, will want to consult a lawyer who specializes in business and contract litigation. An experienced attorney can provide an analysis of the case and an enumeration of legal strategies intended to maximize the chances of a favorable outcome.

Source: California Civil Jury Instructions ยงยง350-361, accessed on March 29, 2016

No Comments

Leave a comment
Comment Information
Email Us For A Response

Tell Us How We Can Help You

Bold labels are required.

Email us to request more information or schedule an appointment.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Firm Location:

19900 MacArthur Blvd., Suite 530
Irvine, CA 92612

Phone: 949-751-6389
Fax: 949-271-4861
Irvine Office Location

Firm Numbers: