CACI No. 303. Breach of Contract - Essential Factual Elements

Judicial Council of California Civil Jury Instructions (2024 edition)

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303 . Breach of Contract - Essential Factual Elements

T o recover damages from [ name of defendant ] for br each of contract,

[ name of plaintiff ] must prove all of the following:

1. That [ name of plaintiff ] and [ name of defendant ] entered into a

[2. That [ name of plaintiff ] did all, or substantially all, of the

significant things that the contract required [him/her/ nonbinary

pronoun /it] to do;]

[2. That [ name of plaintiff ] was excused from having to [ specify things

that plaintiff did not do, e.g., obtain a guarantor on the contract ];]

[3. That [ specify occurrence of all conditions required by the contract

for [name of defendant]’s performance, e.g., the property was

rezoned for residential use ];]

[3. That [ specify condition(s) that did not occur ] [was/were] [waived/

[4. That [ name of defendant ] failed to do something that the contract

required [him/her/ nonbinary pronoun /it] to do;]

[4. That [ name of defendant ] did something that the contract

prohibited [him/her/ nonbinary pronoun /it] from doing;]

5. That [ name of plaintiff ] was harmed; and

6. That [ name of defendant ]’s breach of contract was a substantial

factor in causing [ name of plaintiff ]’s harm.

New September 2003; Revised April 2004, June 2006, December 2010, June 201 1,

June 2013, June 2015, December 2016, May 2020

Directions for Use

Read this instruction in conjunction with CACI No. 300, Br each of

Contract - Intr oduction .

Optional elements 2 and 3 both involve conditions precedent. A “condition

precedent” is either an act of a party that must be performed or an uncertain event

that must happen before the contractual right accrues or the contractual duty arises.

( Stephens & Stephens XII, LLC v . Fireman’ s Fund Ins. Co. (2014) 231 Cal.App.4th

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1 131, 1 147 [180 Cal.Rptr .3d 683].) Element 2 involves the first kind of condition

precedent; an act that must be performed by one party before the other is required

to perform. Include the second option if the plaintif f alleges that the plaintif f was

excused from having to perform some or all of the contractual conditions.

Not every breach of contract by the plaintif f will relieve the defendant of the

obligation to perform. The breach must be material; element 2 captures materiality

by requiring that the plaintif f have done the significant things that the contract

required. Also, the two obligations must be dependent , meaning that the parties

specifically bargained that the failure to perform the one relieves the obligation to

perform the other . While materiality is generally a question of fact, whether

covenants are dependent or independent is a matter of construing the agreement.

( Br own v . Grimes (201 1) 192 Cal.App.4th 265, 277-279 [120 Cal.Rptr .3d 893].) If

there is no extrinsic evidence in aid of construction, the question is one of law for

the court. ( V er dier v . V erdier (1955) 133 Cal.App.2d 325, 333 [284 P .2d 94].)

Therefore, element 2 should not be given unless the court has determined that

dependent obligations are involved. If parol evidence is required and a dispute of

facts is presented, additional instructions on the disputed facts will be necessary .

(See City of Hope National Medical Center v . Genentech, Inc. (2008) 43 Cal.4th

375, 395 [75 Cal.Rptr .3d 333, 181 P .3d 142].)

Element 3 involves the second kind of condition precedent; an uncertain event that

must happen before contractual duties are triggered. Include the second option if the

plaintif f alleges that the defendant agreed to perform even though a condition did

not occur . For reasons that the occurrence of a condition may have been excused,

see the Restatement Second of Contracts, section 225, Comment b. See also CACI

No. 321, Existence of Condition Pr ecedent Disputed , CACI No. 322, Occurr ence of

Agr eed Condition Pr ecedent , and CACI No. 323, W aiver of Condition Pr ecedent .

Element 6 states the test for causation in a breach of contract action: whether the

breach was a substantial factor in causing the damages. ( US Ecology , Inc. v . State of

California (2005) 129 Cal.App.4th 887, 909 [28 Cal.Rptr .3d 894].) In the context of

breach of contract, it has been said that the term “substantial factor” has no precise

definition, but is something that is more than a slight, trivial, negligible, or

theoretical factor in producing a particular result. ( Haley v . Casa Del Rey

Homeowners Assn. (2007) 153 Cal.App.4th 863, 871-872 [63 Cal.Rptr .3d 514]; see

CACI No. 430, Causation - Substantial Factor , applicable to negligence actions.)

Equitable remedies are also available for breach. “As a general proposition, ‘[t]he

jury trial is a matter of right in a civil action at law , but not in equity . [Citations.]’ ”

( C & K Engineering Contractors v . Amber Steel Co., Inc. (1978) 23 Cal.3d 1, 8

[151 Cal.Rptr . 323, 587 P .2d 1 136]; Selby Constructors v . McCarthy (1979) 91

Cal.App.3d 517, 524 [154 Cal.Rptr . 164].) However , juries may render advisory

verdicts on these issues. ( Raedeke v . Gibraltar Savings & Loan Assn. (1974) 10

Cal.3d 665, 670-671 [1 1 1 Cal.Rptr . 693, 517 P .2d 1 157].)

Sources and Authority

• Contract Defined. Civil Code section 1549.

CACI No. 303 CONTRACTS

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• “A contract is a voluntary and lawful agreement, by competent parties, for a

good consideration, to do or not to do a specified thing.” ( Robinson v . Magee

(1858) 9 Cal. 81, 83.)

• “T o prevail on a cause of action for breach of contract, the plaintif f must prove

(1) the contract, (2) the plaintif f’ s performance of the contract or excuse for

nonperformance, (3) the defendant’ s breach, and (4) the resulting damage to the

plaintif f.” ( Richman v . Hartley (2014) 224 Cal.App.4th 1 182, 1 186 [169

Cal.Rptr .3d 475].)

• “Implicit in the element of damage is that the defendant’ s breach caused the

plaintif f’ s damage.” ( T r oyk v . Farmers Gr oup, Inc. (2009) 171 Cal.App.4th 1305,

1352 [90 Cal.Rptr .3d 589], original italics.)

• “It is elementary a plaintif f suing for breach of contract must prove it has

performed all conditions on its part or that it was excused from performance.

Similarly , where defendant’ s duty to perform under the contract is conditioned

on the happening of some event, the plaintif f must prove the event transpired.”

( Consolidated W orld Investments, Inc., v . Lido Pr eferr ed Ltd. (1992) 9

Cal.App.4th 373, 380 [1 1 Cal.Rptr .2d 524], internal citation omitted.)

• “When a party’ s failure to perform a contractual obligation constitutes a material

breach of the contract, the other party may be discharged from its duty to

perform under the contract. Normally the question of whether a breach of an

obligation is a material breach, so as to excuse performance by the other party ,

is a question of fact. Whether a partial breach of a contract is material depends

on ‘the importance or seriousness thereof and the probability of the injured party

getting substantial performance.’ ‘A material breach of one aspect of a contract

generally constitutes a material breach of the whole contract.’ ” ( Br own, supra ,

192 Cal.App.4th at pp. 277-278, internal citations omitted.)

• “The obligations of the parties to a contract are either dependent or independent.

The parties’ obligations are dependent when the performance by one party is a

condition precedent to the other party’ s performance. In that event, one party is

excused from its obligation to perform if the other party fails to perform. If the

parties’ obligations are independent, the breach by one party does not excuse the

other party’ s performance. Instead, the nonbreaching party still must perform and

its remedy is to seek damages from the other party based on its breach of the

contract.” ( Colaco v . Cavotec SA (2018) 25 Cal.App.5th 1172, 1 182-1183 [236

Cal.Rptr .3d 542], internal citations omitted.)

• “Whether specific contractual obligations are independent or dependent is a

matter of contract interpretation based on the contract’ s plain language and the

parties’ intent. Dependent covenants or ‘[c]onditions precedent are not favored in

the law [citations], and courts shall not construe a term of the contract so as to

establish a condition precedent absent plain and unambiguous contract language

to that ef fect.’ ” ( Colaco , supra , 25 Cal.App.5th at p. 1 183, internal citations

• “The wrongful, i.e., the unjustified or unexcused, failure to perform a contract is

CONTRACTS CACI No. 303

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a br each . Where the nonperformance is legally justified, or excused, there may

be a failure of consideration, but not a breach.” (1 W itkin, Summary of

California Law (10th ed. 2005) Contracts, § 847, original italics, internal

citations omitted.) “Ordinarily , a breach is the result of an intentional act, but

negligent performance may also constitute a breach, giving rise to alternative

contract and tort actions.” ( Ibid. , original italics.)

• “ ‘ “Where a party’ s breach by non-performance contributes materially to the

non-occurrence of a condition of one of his duties, the non-occurrence is

excused.” [Citation.]’ ” ( Stephens & Stephens XII, LLC, supra , 231 Cal. App. 4th

at p. 1 144.)

• “ ‘Causation of damages in contract cases, as in tort cases, requires that the

damages be proximately caused by the defendant’ s breach, and that their causal

occurrence be at least reasonably certain.’ A proximate cause of loss or damage

is something that is a substantial factor in bringing about that loss or damage.”

( U.S. Ecology , Inc., supra , 129 Cal.App.4th at p. 909, internal citations omitted.)

• “An essential element of [breach of contract] claims is that a defendant’ s alleged

misconduct was the cause in fact of the plaintif f’ s damage. [¶] The causation

analysis involves two elements. ‘ “One is cause in fact . An act is a cause in fact

if it is a necessary antecedent of an event.” [Citation.]’ The second element is

proximate cause. ‘ “[P]roximate cause ‘is ordinarily concerned, not with the fact

of causation, but with the various considerations of policy that limit an actor ’ s

responsibility for the consequences of his conduct.’ ” ’ ” ( T ribeca Companies,

LLC v . First American T itle Ins. Co. (2015) 239 Cal.App.4th 1088, 1102-1 103

[192 Cal.Rptr .3d 354], footnote and internal citation omitted.)

• “Determining whether a defendant’ s misconduct was the cause in fact of a

plaintif f’ s injury involves essentially the same inquiry in both contract and tort

cases.” ( T ribeca Companies, LLC, supra , 239 Cal.App.4th at p. 1103.)

• “b. Excuse . The non-occurrence of a condition of a duty is said to be ‘excused’

when the condition need no longer occur in order for performance of the duty to

become due. The non-occurrence of a condition may be excused on a variety of

grounds. It may be excused by a subsequent promise, even without

consideration, to perform the duty in spite of the non-occurrence of the

condition. See the treatment of ‘waiver ’ in § 84, and the treatment of discharge

in §§ 273-85. It may be excused by acceptance of performance in spite of the

non-occurrence of the condition, or by rejection following its non-occurrence

accompanied by an inadequate statement of reasons. See §§ 246-48. It may be

excused by a repudiation of the conditional duty or by a manifestation of an

inability to perform it. See § 255; §§ 250-51. It may be excused by prevention

or hindrance of its occurrence through a breach of the duty of good faith and

fair dealing (§ 205). See § 239. And it may be excused by impracticability . See

§ 271. These and other grounds for excuse are dealt with in other chapters of

this Restatement. This Chapter deals only with one general ground, excuse to

avoid forfeiture. See § 229.” (Rest.2d of Contracts, § 225, comment b.)

CACI No. 303 CONTRACTS

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Secondary Sources

1 W itkin, Summary of California Law (1 1th ed. 2017) Contracts, § 872

13 California Forms of Pleading and Practice, Ch. 140, Contracts , § 140.50

(Matthew Bender)

5 California Points and Authorities, Ch. 50, Contracts , § 50.10 et seq. (Matthew

2 Matthew Bender Practice Guide: California Contract Litigation, Ch. 22, Suing or

Defending Action for Br each of Contract , 22.03-22.50

CONTRACTS CACI No. 303

Page last reviewed May 2024

Kathryn Robb

Kathryn Robb, National Director of the Children’s Justice Campaign at Enough Abuse, discusses Vice President Kamala Harris’s unusual mention of child sexual abuse during her Democratic National Convention speech and its broader implications for addressing this issue in America.

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