$4,000
Average contract dispute claim
75%+
Win rate with written contracts
4-6 years
Statute of limitations (varies)
What You Must Prove
To win a breach of contract case, you must prove all four of these elements:
1. Valid Contract Exists
There must be an enforceable agreement (written or verbal)
2. You Performed Your Part
You held up your end of the deal (or were excused from doing so)
3. Other Party Breached
They failed to perform their obligations under the contract
4. You Suffered Damages
The breach caused you actual financial harm
Types of Contracts You Can Sue Over
Written Contracts
Signed agreements, purchase orders, service contracts
Verbal Agreements
Oral promises can be enforceable (though harder to prove)
Service Contracts
Agreements for work or services to be performed
Sales Contracts
Agreements to buy or sell goods or property
Lease Agreements
Rental contracts for property or equipment
Employment Contracts
Agreements regarding job terms, pay, or benefits
How to Sue for Breach of Contract
Step 1: Review Your Contract
Identify the specific terms that were violated. Highlight the relevant sections and note the dates of any breaches.
Step 2: Document the Breach
Gather evidence showing what was promised vs. what was delivered. Save emails, texts, and any written communications.
Step 3: Calculate Your Damages
Determine how much money you lost because of the breach. Include direct costs and any additional expenses incurred.
Step 4: Send a Demand Letter
Formally notify the other party of the breach and demand they either perform or pay damages. Set a clear deadline.
Step 5: File in Small Claims Court
If they refuse to remedy the breach, file your lawsuit. Bring your contract, evidence, and damage calculations.
Step 6: Present Your Case
Show the judge the contract, prove the breach occurred, and demonstrate your damages. Be clear and organized.
Types of Damages You Can Recover
Compensatory Damages
- • Direct damages: Money to put you in the position you'd be in if the contract was fulfilled
- • Consequential damages: Additional losses caused by the breach
- • Incidental damages: Costs incurred trying to remedy the breach
Other Remedies
- • Restitution: Return of money or property you provided
- • Specific performance: Court orders them to fulfill the contract (rare)
- • Rescission: Cancel the contract and restore both parties
Can I Sue Over a Verbal Agreement?
Yes! Verbal contracts are generally enforceable, though they're harder to prove. You'll need:
- Witnesses who heard the agreement
- Texts, emails, or messages referencing the deal
- Evidence of partial performance
- Payment records or receipts
Note: Some contracts MUST be in writing (real estate, contracts over 1 year, etc.)
Frequently Asked Questions
How long do I have to sue for breach of contract?
Written contracts typically have a 4-6 year statute of limitations, while verbal contracts are usually 2-4 years. The clock starts when the breach occurs.
What if I also breached the contract?
If you breached first or your breach was "material" (significant), you may not be able to sue. Minor breaches usually don't prevent you from suing for the other party's breach.
Can I sue if there's an arbitration clause?
Many contracts require disputes go to arbitration instead of court. Check your contract carefully. Small claims courts may have different rules about enforcing these clauses.
What if the contract says I can't sue?
Some limitation clauses are unenforceable. "No lawsuit" clauses often don't apply to small claims court. Consult your state's rules.
Can I recover attorney's fees?
Only if the contract includes an attorney's fees clause, or your state law allows it. In small claims court, you typically represent yourself anyway.
Ready to Hold Them Accountable?
SmolClaims helps you prepare court-ready documents to sue for breach of contract. No lawyer needed.