Civil Code section 1549 provides: “A contract is an agreement to do or not to do a certain thing.” Courts have defined the term as follows: “A contract is a voluntary and lawful agreement, by competent parties, for good consideration, to do or not to do a specified thing.” (Robinson v. Magee (1858) 9 Cal. 81, 83.)
A breach of contract is when one or more parties fail to perform the agreement entered into prior to the performance of the specified thing.
This is probably one of the most often asked questions of me when I start my review of a breach of contract case. Whether a case proceeds to litigation often depends on the ability to recover the cost of attorney’s fees from the opposing party. I often see businesses or individuals that are owed $20,000.00 or less from someone that did not pay for the services or did not pay on a loan.