No damages can be recovered for a breach of contract which are not clearly ascertainable in both their nature and origin.
Article 1Possession of Real Property
Section § 3301
If someone breaks a contract, you can only obtain damages if it's clear what the damages are and where they came from.
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Section § 3302
If someone fails to pay an amount of money they owe as agreed, the harm is considered to be the unpaid amount plus any interest that has accumulated.
The detriment caused by the breach of an obligation to pay money only, is deemed to be the amount due by the terms of the obligation, with interest thereon.
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Section § 3304
This law explains what happens if someone breaks a promise related to owning or transferring property. If you buy property and later discover that the seller broke this promise, you might be entitled to get back the money you paid. If only part of the property is affected, you'll get back a proportionate amount. You could also get interest for up to five years if you couldn’t use the property, plus any reasonable expenses you had defending your right to the property.
The detriment caused by the breach of a covenant of “seizin,” of “right to convey,” of “warranty,” or of “quiet enjoyment,” in a grant of an estate in real property, is deemed to be:
1. The price paid to the grantor; or, if the breach is partial only, such proportion of the price as the value of the property affected by the breach bore at the time of the grant to the value of the whole property;
2. Interest thereon for the time during which the grantee derived no benefit from the property, not exceeding five years;
3. Any expenses properly incurred by the covenantee in defending his possession.
breach of covenant seizin right to convey warranty quiet enjoyment real property grant damages property value grantee grantor interest on payment property defense expenses partial breach
Section § 3305
This law explains how to determine the financial loss when someone breaks a promise that there are no hidden legal claims or burdens, called incumbrances, linked to a property you've bought. The compensation should match what you've actually spent to resolve these issues. If you're resolving the main problem, it shouldn't surpass a part of what you paid for the property. This part relates to how much the specific affected area was worth when you bought it. Alternatively, if you're resolving interest issues, it should reflect that amount in interest terms.
The detriment caused by the breach of a covenant against incumbrances in a grant of an estate in real property is deemed to be the amount which has been actually expended by the covenantee in extinguishing either the principal or interest thereof, not exceeding in the former case a proportion of the price paid to the grantor equivalent to the relative value at the time of the grant of the property affected by the breach, as compared with the whole, or, in the latter case, interest on a like amount.
detriment caused breach of covenant incumbrances grant of estate real property covenantee extinguishing principal interest relative value of property price paid to grantor hidden legal claims financial loss due to breach compensation for incumbrances property burdens resolving property issues
Section § 3306
This law explains what someone can claim if another person backs out of a deal to sell property. It includes getting back the money already paid, covering costs like checking the title or prepping documents, and the difference in value between the agreed price and actual worth of the property at the time of the breach. It also allows for other related costs and interest to be recovered.
The detriment caused by the breach of an agreement to convey an estate in real property, is deemed to be the price paid, and the expenses properly incurred in examining the title and preparing the necessary papers, the difference between the price agreed to be paid and the value of the estate agreed to be conveyed at the time of the breach, the expenses properly incurred in preparing to enter upon the land, consequential damages according to proof, and interest.
breach of agreement real property conveyance price paid examining title expenses preparing documents difference in value consequential damages preparing to enter land interest property transaction property value claim financial recovery
Section § 3306a
If someone breaks a promise to sign over their rights to a property through a quitclaim deed, the least amount of harm they are responsible for is covering the costs the other person had to pay to legally confirm their ownership of the property and the costs related to accessing the property. These costs include reasonable attorneys' fees and will be determined by the court during the ownership confirmation process.
The minimum detriment caused by the breach of an agreement to execute and deliver a quitclaim deed to real property is deemed to be the expenses incurred by the promisee in quieting title to such property, and the expenses incidental to the entry upon such property. Such expenses which shall include reasonable attorneys’ fees shall be fixed by the court in the quiet title action.
quitclaim deed property breach quieting title attorneys' fees real property property expenses court determination promise breach legal costs real estate transfer title confirmation entry expenses
Section § 3307
If someone breaks a contract to buy property, the harm is measured by the difference between the agreed price and the property's value to the seller, plus any additional proven damages and interest.
The detriment caused by the breach of an agreement to purchase an estate in real property is deemed to be the excess, if any, of the amount which would have been due to the seller under the contract over the value of the property to him or her, consequential damages according to proof, and interest.
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Section § 3308
This section explains that in leases, the landlord and tenant can agree that if the tenant breaks the lease and the landlord ends it, the landlord can claim the difference between the agreed rent and the property's current fair rental value. However, the landlord must choose this remedy and stick to it, not switching to other claims for rent or damages after the lease ends. Also, this rule doesn't apply to leases made after July 1, 1971, except under certain conditions, and it doesn't cover some commercial leases.
The parties to any lease of real or personal property may agree therein that if the lease shall be terminated by the lessor by reason of any breach thereof by the lessee, the lessor shall thereupon be entitled to recover from the lessee the worth at the time of the termination, of the excess, if any, of the amount of rent and charges equivalent to rent reserved in the lease for the balance of the stated term or any shorter period of time over the then reasonable rental value of the property for the same period.
The rights of the lessor under the agreement shall be cumulative to all other rights or remedies
now or hereafter given to the lessor by law or by the terms of the lease; provided, however, that the election of the lessor to exercise the remedy hereinabove permitted shall be binding upon him or her and exclude recourse thereafter to any other remedy for rental or charges equivalent to rental or damages for breach of the covenant to pay the rent or charges accruing subsequent to the time of the termination. The parties to the lease may further agree therein that unless the remedy provided by this section is exercised by the lessor within a specified time the right thereto shall be barred.
This section does not apply to a lease of real property unless (a) the lease was executed before July 1, 1971, or (b) the terms of the lease were fixed by a lease, option, or other agreement executed before July 1, 1971.
This section does not apply to leases subject to Division 10 (commencing
with Section 10101) of the Commercial Code.
lease termination landlord rights tenant breach rent recovery reasonable rental value lease agreements cumulative remedies specified time limitation lease executed before 1971 commercial leases lease termination consequences landlord remedy election rental charges claim personal property lease real property lease
Section § 3315
If a transportation company fails to carry out its duty to transport goods, messages, or passengers, the financial loss is considered the difference between their usual charges and what you'd have to pay to get the service from someone else at the right time.
The detriment caused by the breach of a carrier’s obligation to accept freight, messages, or passengers, is deemed to be the difference between the amount which he had a right to charge for the carriage and the amount which it would be necessary to pay for the same service when it ought to be performed.
transportation breach carrier obligation freight acceptance passenger service financial loss difference in charges service performance transportation charges carrier responsibility breach consequences obligation to accept carriage failure replacement cost detriment calculation service obligation
Section § 3316
If a shipping company fails to deliver freight but hasn't kept it for themselves, the person affected can claim compensation equal to the value of the goods at the destination on the expected delivery date, minus any delivery fees that would have been payable.
The detriment caused by the breach of a carrier’s obligation to deliver freight, where he has not converted it to his own use, is deemed to be the value thereof at the place and on the day at which it should have been delivered, deducting the freightage to which he would have been entitled if he had completed the delivery.
shipment delay compensation freight value delivery obligation carrier's breach compensation for undelivered goods deducting freightage non-conversion of goods place and day of delivery value assessment entitlement deduction
Section § 3317
This law explains that if a carrier is late in delivering freight, the loss is measured by how much the goods lose in inherent value during the delay and any drop in their market value at the delivery location from the expected delivery date to the actual delivery date.
The detriment caused by a carrier’s delay in the delivery of freight, is deemed to be the depreciation in the intrinsic value of the freight during the delay, and also the depreciation, if any, in the market value thereof, otherwise than by reason of a depreciation in its intrinsic value, at the place where it ought to have been delivered, and between the day at which it ought to have been delivered, and the day of its actual delivery.
carrier's delay freight delivery intrinsic value depreciation market value depreciation place of delivery expected delivery date actual delivery date freight value loss late delivery consequences carrier responsibility
Section § 3318
This law is about what happens when an agent promises they have authority to act for someone else but don't actually have that permission. If this promise (or 'warranty') is broken, the person affected is entitled to an amount of money they could have gotten if the agent's promise had been true, plus any reasonable legal costs they spent trying to enforce this promise with the principal (the person the agent was supposed to represent).
The detriment caused by the breach of a warranty of an agent’s authority, is deemed to be the amount which could have been recovered and collected from his principal if the warranty had been complied with, and the reasonable expenses of legal proceedings taken, in good faith, to enforce the act of the agent against his principal.
breach of warranty agent's authority principal recovery legal expenses reasonable expenses good faith enforce warranty detriment promise compliance authority promise agent's promise damage calculation
Section § 3319
This law allows people who hire architects, engineers, or land surveyors for private projects to agree on a late payment penalty in their contracts instead of charging interest. This penalty is separate from other legal claims like liens, and doesn’t apply to construction loan money. The law defines who counts as a 'contracting party' and 'design professional.'
(a)CA Civil Law Code § 3319(a) In each written contract for private works of improvement entered into on or after January 1, 1996, the contracting party and the design professional may agree to contractual provisions that include a late payment penalty, in lieu of any interest otherwise due. The terms of the late payment penalty shall be specifically set forth in the written contract.
(b)CA Civil Law Code § 3319(b) The penalty authorized pursuant to subdivision (a) shall be separate from, and in addition to, the design professionals liens provided by Chapter 3 (commencing with Section 8300) of Title 2 of Part 6 of Division 4, mechanics liens provided by Chapter 4 (commencing with Section 8400) of Title 2 of Part 6 of Division 4, and stop payment notices provided by Chapter 5 (commencing with Section 8500) of Title 2 of Part 6 of Division 4.
(c)CA Civil Law Code § 3319(c) None of the rights or obligations created or permitted by this section between design professionals and contracting parties shall apply to construction loan funds held by a lender pursuant to a construction loan agreement.
(d)CA Civil Law Code § 3319(d) For purposes of this section, the following definitions apply:
(1)CA Civil Law Code § 3319(d)(1) “Contracting party” means any
person or entity entering into a written contract with a design professional for professional design services for a private work of improvement.
(2)CA Civil Law Code § 3319(d)(2) “Design professional” means a person licensed as an architect pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and Professions Code, registered as a professional engineer pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of the Business and Professions Code, or licensed as a land surveyor pursuant to Chapter 15 (commencing with Section 8700) of Division 3 of the Business and Professions Code.
late payment penalty design professional contracting party private works of improvement architect professional engineer land surveyor contract provisions construction loan funds mechanics liens design professionals liens stop payment notices Section 8300 Section 5500 licensed architect
Section § 3320
If a public agency hires an architect, engineer, or land surveyor for a public construction project, they must pay them within 30 days after a payment request is made. The final payment must be paid within 45 days. If the agency disputes an amount, they can withhold up to 150% of the disputed figure. If they don't pay on time, the professional is entitled to a 1.5% monthly penalty on the withheld amount. This penalty is separate from other liens and notices related to construction projects. This law does not apply to contracts with state agencies covered by a different law and doesn't apply to construction loan funds held by banks.
(a)CA Civil Law Code § 3320(a) In each contract for public works of improvement, entered into on or after January 1, 1996, the public agency shall pay to the prime design professional any progress payment within 30 days of receipt of a written demand for payment in accordance with the contract, and the final retention payment within 45 days of receipt of a written demand for payment in accordance
with the contract. If the public agency disputes in good faith any portion of the amount due, it may withhold from the payment an amount not to exceed 150 percent of the disputed amount. The disputed amount withheld is not subject to any penalty authorized by this section.
(b)CA Civil Law Code § 3320(b) If any amount is wrongfully withheld or is not timely paid in violation of this section, the prime design professional shall be entitled to a penalty of 11/2 percent for the improperly withheld amount, in lieu of any interest otherwise due, per month for every month that payment is not made. In any action for the collection of amounts withheld in violation of this section, the prevailing party is entitled to his or her reasonable attorney’s fees and costs.
(c)CA Civil Law Code § 3320(c) The penalty described in subdivision (b) is
separate from, and in addition to, the design professionals liens provided by Chapter 3 (commencing with Section 8300) of Title 2 of Part 6 of Division 4, mechanics liens provided by Chapter 4 (commencing with Section 8400) of Title 2 of Part 6 of Division 4, and stop payment notices on public works provided by Chapter 4 (commencing with Section 9350) of Title 3 of Part 6 of Division 4.
(d)CA Civil Law Code § 3320(d) This section does not apply to state agency contracts subject to Section 927.6 of the Government Code.
(e)CA Civil Law Code § 3320(e) None of the rights or obligations created by this section between prime design professionals and public agencies apply to construction loan funds held by a lender pursuant to a construction loan agreement.
(f)CA Civil Law Code § 3320(f) For purposes of this section:
(1)CA Civil Law Code § 3320(f)(1) “Public agency”
means the state, any county, any city, any city and county, any district, any public authority, any public agency, any municipal corporation, or other political subdivision or political corporation of the state.
(2)CA Civil Law Code § 3320(f)(2) “Design professional” means a person licensed as an architect pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and Professions Code, registered as a professional engineer pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of the Business and Professions Code, or licensed as a land surveyor pursuant to Chapter 15 (commencing with Section 8700) of Division 3 of the Business and Professions Code.
(3)CA Civil Law Code § 3320(f)(3) “Prime design professional” means a design professional with a written contract directly with the public agency.
public agency payment prime design professional progress payment final retention payment dispute 150 percent withholding penalty for late payment 1.5 percent penalty design professional liens mechanics liens stop payment notices state agency contracts construction loan funds architect professional engineer land surveyor
Section § 3321
This law deals with contracts for public works projects and specifies how payments should be handled between a lead design professional (like an architect or engineer with a contract directly with a public agency) and their subcontracted design professionals. The lead design professional must pay subcontractors their share within 15 days of receiving payment unless there's a legitimate dispute, in which case they can withhold up to 150% of the disputed amount. If payments are late or wrongfully withheld, subcontractors can claim a penalty of 1.5% monthly on the amount owed, plus attorney's fees if they sue and win. This section's rules don't apply to construction loans held by banks. Separate rights exist for design professionals to file liens or stop payment notices.
(a)CA Civil Law Code § 3321(a) In each contract for public works of improvement, a prime design professional shall pay to each subconsultant design professional the amount due him or her from the payment received, not later than 15 days after receipt of each progress payment or final retention payment. If the prime design professional disputes in good faith any portion of the amount due, he or she
may withhold from the payment an amount not to exceed 150 percent of the disputed amount. The disputed amount withheld shall not be subject to any penalty authorized by this section.
(b)CA Civil Law Code § 3321(b) If any amount is wrongfully withheld or is not timely paid in violation of this section, the subconsultant design professional shall be entitled to a penalty of 11/2 percent of the improperly withheld amount, in lieu of any interest otherwise due, per month, for each month that payment is not made. In any action for the collection of amounts withheld in violation of this section, the prevailing party shall be entitled to his or her reasonable attorney’s fees and costs.
(c)CA Civil Law Code § 3321(c) The penalty described in subdivision (b) shall be separate from, and in addition to, the design professionals liens provided by
Chapter 3 (commencing with Section 8300) of Title 2 of Part 6 of Division 4, mechanics liens provided by Chapter 4 (commencing with Section 8400) of Title 2 of Part 6 of Division 4, and stop payment notices on public works provided by Chapter 4 (commencing with Section 9350) of Title 3 of Part 6 of Division 4.
(d)CA Civil Law Code § 3321(d) None of the rights or obligations created by this section between prime design professionals and subconsultant design professionals shall apply to construction loan funds held by a lender pursuant to a construction loan agreement.
(e)CA Civil Law Code § 3321(e) For purposes of this section:
(1)CA Civil Law Code § 3321(e)(1) “Public agency” means the state, any county, any city, any city and county, any district, any public authority, any public agency, any municipal corporation, or other political subdivision or political corporation of the state.
(2)CA Civil Law Code § 3321(e)(2) “Design professional” means a person licensed as an architect pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and Professions Code, registered as a professional engineer pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of the Business and Professions Code, or licensed as a land surveyor pursuant to Chapter 15 (commencing with Section 8700) of Division 3 of the Business and Professions Code.
(3)CA Civil Law Code § 3321(e)(3) “Prime design professional” means a design professional having a written contract directly with the public agency.
(4)CA Civil Law Code § 3321(e)(4) “Subconsultant design professional” means a design professional having a written contract with a prime design professional.
public works contracts prime design professional subconsultant design professional progress payment retention payment payment disputes withholding funds penalty for late payment design professionals liens stop payment notices construction loan funds architect licenses professional engineer registration land surveyor licenses public agency contracts
Section § 3322
If you're a broker arranging dump truck services for construction and hiring independent contractors, you must pay their transportation charges by the 25th of the month after work is done if they submit their charges by the 5th. If there's a dispute over the charges, you can hold back up to 150% of the estimated cost of the disputed amount. If you don't pay on time, you'll owe a penalty of 2% per month on the overdue amount. Whoever wins a payment dispute is also entitled to their attorney's fees and costs. This rule only applies if the motor carrier complies with specific vehicle regulations.
(a)Copy CA Civil Law Code § 3322(a)
(1)Copy CA Civil Law Code § 3322(a)(1) A broker of construction trucking services shall pay all transportation charges submitted by a motor carrier of property in dump truck equipment by the 25th day following the last day of the calendar month in which the transportation was performed, if the charges, including all necessary documentation, are submitted by the fifth day following the last day of the calendar month in which the transportation was performed. If there is a good faith dispute over a portion of the charges claimed, the broker may
withhold payment of an amount not to exceed 150 percent of the estimated cost of the disputed amount.
(2)CA Civil Law Code § 3322(a)(2) A broker who violates paragraph (1) shall pay to the motor carrier of property in dump truck equipment a penalty of 2 percent per month on the improperly withheld amount.
(3)CA Civil Law Code § 3322(a)(3) In an action for the collection of moneys not paid in accordance with paragraph (1), the prevailing party shall be entitled to his or her attorney’s fees and costs.
(b)CA Civil Law Code § 3322(b) For purposes of subdivision (a), the following definitions apply:
(1)CA Civil Law Code § 3322(b)(1) A “broker of construction trucking services” means any person, excluding a licensed contractor, that, as a principal or agent, arranges for transportation services to be provided by an independent contractor motor carrier of property in dump
truck equipment and who is responsible for paying the transportation charges of the motor carrier.
(2)CA Civil Law Code § 3322(b)(2) A “motor carrier of property in dump truck equipment” means a motor carrier of property permitted by the Department of Motor Vehicles that hauls any type of construction commodity or material in dump truck equipment.
(c)CA Civil Law Code § 3322(c) Subdivision (a) only applies if a motor carrier of property is in compliance with Division 14.85 (commencing with Section 36000) of the Vehicle Code at the time the dump truck transportation work is performed.
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Section § 3375
If you have a rightful claim to a piece of real estate, either because you already have a solid title or should have one, you can get the property back through legal means. This could involve the court ordering the sheriff to give you possession of the property or instructing the other party to finish whatever paperwork is needed for the title and hand over the property.
A person entitled to specific real property, by reason either of a perfected title, or of a claim to title which ought to be perfected, may recover the same in the manner prescribed by the Code of Civil Procedure, either by a judgment for its possession, to be executed by the Sheriff, or by a judgment requiring the other party to perfect the title, and to deliver possession of the property.
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Section § [3300.]
Section 3300 explains that if someone breaks a contract, the person harmed should be paid an amount that covers all direct and foreseeable harm caused by the breach. This amount is what reasonably compensates for the losses they suffer due to not fulfilling the contract.
Section Thirty-three Hundred. For the breach of an obligation arising from contract, the measure of damages, except where otherwise expressly provided by this Code, is the amount which will compensate the party aggrieved for all the detriment proximately caused thereby, or which, in the ordinary course of things, would be likely to result therefrom.
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