If someone with whom you’ve entered an agreement fails to uphold their end of the bargain, you may assert that they committed a breach of contract. But when does a breach of contract claim arise under Oregon law? And what do you need to prove to recover compensation or obtain other relief in your case?
What Counts as a Breach of Contract in Oregon?
A party may breach a contract under Oregon law if they fail to perform a duty under a valid agreement without a legal excuse. Oregon recognizes the validity of both oral and written contracts. However, certain contracts must have a written agreement, such as contracts or leases that must take longer than a year to perform, a guaranty for another party’s debt, prenuptial agreements, real estate purchase/sale agreements, or the sale of goods valued at $500 or more.
Breaches of contract come in several forms: minor, material, and anticipatory. A minor breach involves the failure to perform some duty under an agreement, but that failure does not undermine the contract’s essential purpose. A material breach results from the failure to perform some essential purpose of the contract. An anticipatory breach occurs when a party, still having time to perform under a contract, communicates their intent not to perform.
The Four Elements of a Breach of Contract Claim
A claim for breach of contract in Oregon requires a party to establish four elements to obtain relief. These elements include:
- The existence of a valid contract (created by an offer, an acceptance of that offer, and the exchange of something of value)
- The breaching party’s failure to perform a duty as promised
- The non-breaching party’s performance of their duties or willingness and ability to perform (unless otherwise excused)
- Harm or losses incurred by the non-breaching party from the breach
In a legal action alleging breach of contract, a factfinder will require a claimant to present competent evidence, including documents or witness testimony, to prove each element by the applicable legal standard, usually a “preponderance of the evidence” (“more likely than not”).
What Relief Can You Seek in a Breach of Contract Case?
If you allege that a counterparty to your contract has breached one or more of their duties under your agreement, you may pursue various forms of relief depending on the nature of the breach and the surrounding circumstances. In many cases, a non-breaching party can recover financial compensation for losses caused by the breach. Oregon courts typically award “expectation damages,” designed to put a non-breaching party in the position they would have occupied if the breaching party had performed the contract, ensuring the non-breaching party receives the “benefit of the bargain.” Expectation damages can include incidental losses, such as costs incurred to deal with the breach, or consequential losses, such as lost sales or business opportunities.
Depending on the nature of the parties’ contract, they may have trouble proving losses from a breach with reasonable specificity. Parties can agree to a contractual provision for “liquidated damages,” which allows a non-breaching party to recover a specific amount of money that represents a reasonable estimate of losses stemming from a breach.
In rarer circumstances, courts may order other forms of relief for a breach of contract, such as rescission, which cancels the contract and puts the parties in their pre-contractual positions, or specific performance, which requires the breaching party to fulfill their duties.
Contact Our Firm Today for Experienced Advice and Advocacy
When another party breaks a promise under their contract with you, you may have the right to seek financial compensation or other relief in a breach of contract claim. Contact Wayne A. Lamb Law today for a free consultation with an Oregon civil litigation attorney to learn more about breach of contract claims under Oregon law and discuss what evidence you may need to prove that a counterparty breached your agreement and caused you financial losses.