The Four Elements of a Breach of Contract Claim in California

When a California employer fails to honor the terms of an employment contract, affected employees may have grounds to file a breach of contract claim. Employment contracts—whether written, verbal, or implied—are legally binding agreements. If your employer violates the terms of that agreement, you may be entitled to compensation for lost wages, benefits, or other damages. To succeed in a Orange County breach of contract lawsuit, you must prove four key legal elements.

1. Existence of a Valid Contract

The first element of a breach of contract claim is the existence of a valid, enforceable contract. In California, a contract may be:

• Written: A signed employment agreement outlining job duties, pay, duration, or severance terms.
• Oral: A spoken agreement with specific terms made between employer and employee.
• Implied: Based on employer conduct or policies that create a reasonable expectation of employment terms.

Employees must show that a clear offer was made, the employee accepted it, and both parties exchanged something of value (consideration), such as work in exchange for wages.

2. Employee’s Performance or Excuse for Nonperformance

Next, the employee must demonstrate that they performed their duties under the contract or had a valid reason for not performing. For example, if you upheld your end of the agreement by fulfilling your job responsibilities, attending work, or meeting deadlines, you satisfy this element. Alternatively, if your nonperformance resulted from the employer’s wrongful conduct (such as denying necessary tools or access), that may excuse your inability to perform.

3. Employer’s Breach of the Contract

This is the heart of your claim. You must show that your employer failed to fulfill one or more essential terms of the contract. Examples of breach by an employer include:

• Not paying agreed wages or bonuses
• Wrongfully terminating employment before the agreed period without cause
• Failing to provide promised benefits, such as health insurance or paid time off
• Ignoring non-compete, confidentiality, or severance clauses

The breach must be material, meaning it defeats the contract’s purpose or significantly harms the employee.

4. Resulting Harm or Damages to the Employee

Finally, the employee must prove they suffered economic or other losses as a direct result of the employer’s breach. Common damages include:

• Unpaid wages or commissions
• Lost benefits
• Emotional distress (in limited cases)
• Attorney’s fees and legal costs (if the contract provides for them)

The more clearly you document the damages—pay stubs, contracts, emails—the stronger your claim will be.

Why You Need an Orange County Breach of Contract Lawyer

Proving a breach of contract in California can be complex, especially when dealing with implied terms or partial performance. An experienced Orange County breach of contract attorney can help you gather evidence, interpret your contract, and file a strong claim. Whether your contract was written or verbal, you have the right to hold your employer accountable for violating its terms.

If you believe your employer breached your employment contract, contact Aegis Law Firm today to arrange a free consultation to protect your rights and pursue the compensation you deserve.