Proving Your “Breach of Contract” Cause of Action

On a Breach of Contract cause of action you have to show the following:

1. That you had a valid and enforceable contract.
2. That you performed according to the contract.
3. That the defendant breached the contract (usually by not paying the money due)
4. And that you have been damaged as a result in the total sum as per the contract

If you fail to prove any one of these your breach of contract claim will fail.

A valid contract exists when:

1. There is an offer which contains all of the material and specific terms
2. That offer was accepted by the defendant and
3. There is valid consideration for the agreement.

A Breach of Contract claim may fail for numerous reasons such as:

1. There was not an actual agreement on the price of services rendered.
2. There was not an actual agreement on quantity
3. There was not an actual agreement on the scope of services
4. There was not an actual agreement on the term of the agreement
5. You cannot prove your damages or your damages are not directly (proximately) caused by the defendant’s alleged conduct
6. You cannot show that a modification to an agreement was in writing.
7. You cannot show that the defendant specifically authorized, consented to, or approved your services
8. You don’t have a signed contract
9. There was no legal consideration for the contract/agreement

Key Contract Provisions:

In addition, a well-drafted contract should include some of the following provisions to help you collect your debt and minimize your liability:

• legal fees provision: to ensure you get legal fees if you are successful in litigation or arbitration.
• arbitration provision: to ensure that claims can be handled more efficiently than in Court.
• joint and several liability clause: if there are multiple clients or customers you can enforce your rights as against one or both of them.
• choice of venue clause: to determine where a litigation or arbitration will physically take place.
• choice of law clause: to ensure that the law governing any disputes is based on the state where your Company is physically located.
• limitation of liability clause: to ensure that if there are any counterclaims your liability is specifically limited accordingly.

Supporting Documents You May Need to Prove Your Claim:

• signed contract
• proof of payments
• invoices
• correspondence demanding payment
• documents or correspondence indicated you performed the work
• documents or correspondence indicating that the counter-party received the work or services you performed
• correspondence where your counter-party accepted the work or services you performed.