Legal Question in Business Law in California

Depends upon what your contract says, but in general a party that cancels a contract is in breach but the damages to which the non-breaching party are entitled is not necessarily the full contract price. Most often, the non-breaching party would be awarded damages based on its expenses to date plus its anticipated profit, but not expenses it has not yet incurred. Another issue in the computation of damages is whether the non-breaching party lost other sales while working on or reserving time to work on your job. If a farmer has eight boxes of strawberries left and ten customers waiting in line, his loss when you breach your agreement to buy a box is nil; but if he has eight boxes and three customers, he can show a bigger loss when you bail. Finally, if he grew the strawberries only because you promised to buy them, his loss is huge if he cannot find another buyer. Figuring damages for breach of contract therefore requires looking thoughtfully at how the non-breaching party is affected.

Mr. Whipple is accurate in his analysis; the outcome depends upon the signed agreement and the surrounding facts as to why you want to terminate the agreement. So, please select an attorney of your choice and request a free 20-30 minute consultation via phone and email to review the documents and to hear the facts. Please be prepared for that call with a preliminary email and all of your fact written down so the conversation can go smoothly.

By Grace...

Shawn Jackson ESQ. (707) 584-4529

Business Development Attorney EMAIL: [email protected]

www.CaliforniaBusinessDevelopmentAttorneys.com

www.CaliforniaBusinessDevelopmentCenter.com

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www.CaliforniaBusinessDevelopmentIncubator.com

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