HOW TO PROVE A CONTRACT CLAIM!
To prove a claim, the following facts must be shown:
1. A contract was formed.
2. All conditions have occurred or are excused.
3. You have performed your promises or are excused.
4. The other party has breached the contract.
5. You sustained damages caused by the breach.
1. A contract was formed.
2. All conditions have occurred or are excused.
3. You have performed your promises or are excused.
4. The other party has breached the contract.
5. You sustained damages caused by the breach.
Formation of the Contract
To form a contract, a party must show mutual assent, consideration, and terms that are reasonably definite. If any of these elements are missing, you simply do not have a contract that can be enforced against the other party. Some contracts must be in writing and cannot be enforced unless signed by the party to be charged.
All Conditions Occurred or Excused
Contracts contain promises. Promises are commitments. These commitments create legal duties. In many contracts, duties may be conditioned on the happening of subsequent events. In other words, something must happen before a party must do something promised in the contract. For example, a car owner will take out insurance against collision damage. The insurance company promises to pay for the damage less the deductible. The car owner pays premiums, but the insurance company pays nothing in return, unless the owner has a collision and his car is damaged. The collision is a condition to the insurance company's duty to pay.
Unless excused, you must prove that all conditions to the duties of the other party have occurred or have been excused.
Unless excused, you must prove that all conditions to the duties of the other party have occurred or have been excused.
Your Performance
You must show that you have fully performed all of your obligations under the contract or that they have been excused. If your performance is conditioned upon the other party performing first, then your performance will be excused by the breach. Nonetheless, the law requires that you show that you had the ability to perform. For example, you enter into a contract to buy a house for $500,000. The seller sells the house to a third party before the close of escrow for $600,000. You sue for $100,000. Obviously, you did not pay the purchase price. Your performance has been excused by the seller's breach. As part of your proof in the lawsuit, however, you must show that you had the ability to pay the purchase price of $500,000.
The Other Party's Breach
This requirement is usually straightforward. You would not be in court if the other party had not breached. Proof, however, can get complicated, depending on the circumstances. Usually, these circumstances involve unforeseeable subsequent events that make the other party's performance impracticable.
Damages Caused by the Breach
You must prove that you have been damaged by the breach. First, you must show that the damages in fact occurred due to the breach. Second, you must show with reasonable certainty the amount of your damages. This can be a source of problems, for example, when your claim involves loss of future profits.
In conclusion, a claim for breach of contract cannot stand without these three elements: breach, damages, and a deep pocket. A breach happens when a party fails to perform what he promised to do. Money damages must be caused by the breach. Lastly, the party at fault must have the financial resources to pay the claim. Hence, the expression, "You can't get money out of a deadbeat." If you can put these elements together, you have a solid claim for breach of contract.
In conclusion, a claim for breach of contract cannot stand without these three elements: breach, damages, and a deep pocket. A breach happens when a party fails to perform what he promised to do. Money damages must be caused by the breach. Lastly, the party at fault must have the financial resources to pay the claim. Hence, the expression, "You can't get money out of a deadbeat." If you can put these elements together, you have a solid claim for breach of contract.