contract Archives

A Guide to Liquidated Damages (Civ. Code § 1671)

Published on: October 16, 2024 | By Underwood Law Firm, P.C.

underwood-guide-to-liquidated-damages-300x300 In many contracts, the parties know that one person will be harmed if the other one breaches, but also realize that damage would be hard to calculate. So, what is a person to do to protect themselves from loss while also living their life in a way to pursue their goal? How can the law help people in that situation?

In California, liquidated damages are designed to provide compensation if a hired party fails to perform their job by setting out the specific amount of damages that will be paid if a contract is breached. Liquidated damages are not intended to punish the breaching party. Understanding the purpose and function of liquidated damages will help ensure compensation is available when damages suffered are difficult to prove.

What are Liquidated Damages?

Continue reading →

Is a Deed a Contract?

Published on: July 8, 2024 | By Underwood Law Firm, P.C.

underwood-deed-a-contract-300x300 The purpose of this article is to explore the finer distinctions between deeds and contracts. In California law, a deed is one of the most powerful legal documents that any person will ever handle, but there is very little in the public domain available about them in order to understand them better. Moreover, unlike other legal documents that may virtually require an attorney in order to be prepared properly, almost any owner of real estate could likely create an effective deed and transfer real estate with very little effort.

Because deeds are so powerful on the one hand, yet so easy to create on the other, this article seeks to explore some lesser known technical aspects about deeds in order to increase the public’s knowledge about the law.

What is a deed?

Continue reading →

Are Attorneys’ Fees Available as Contract Damages? (CCP § 3300)

Published on: January 27, 2023 | By Underwood Law Firm, P.C.

Underwood-Blog-Images-5-300x300 Attorney’s fees are those fees owed by a client to an attorney who performed legal services on behalf of the client. In some cases, a court may order the losing party to pay the attorney’s fees of the other party. Whether attorney’s fees are available as damages depends on the nature of the action. In cases involving a breach of contract, whether attorney’s fees are available generally depends on the terms of the contract.

What is a Breach of Contract?

A breached contract occurs when a party fails to fully perform its obligations under a valid contract. Generally, to prove a breach of contract, a litigant must prove that a valid contract existed and that the valid contract was breached by the party in some way, causing damages to the litigant.

Continue reading →