Time is of the Essence and Contract Performance

Contract performance is on one of the main sources of contract disputes, i.e., situations where there is late performance of the agreed upon terms, no performance, or performance that does not adequately match the contract terms. Generally, one party’s minor delay that does not significantly impact the overall contract or cause a material breach will constitute “substantial performance” and will not relieve the other party from performance. It is important to note, however, that...

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Limiting Liability and Damages in a Contract

Certain contract terms can limit liability exposure from potential lawsuits and other claims that may arise. These terms are generally found in limited liability clauses. Certain contractual terms can also limit damages, such as a liquidated damages clause. For these terms to protect contracting parties from liability, they have to be properly drafted and in line with California law. Limited Liability Limited liability clauses are permitted by California law, but courts will strictly construe such contract...

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California Boundary Disputes and Property Line Disputes

Boundaries are the lines defining the location of a parcel of real property. Boundary disputes frequently arise between homeowners, business owners, private individuals, and the government. These disputes sometimes arise because of misunderstandings, but more often they are just disagreements about ownership, land use, and property lines. Other property disputes involve disagreements about the boundaries. These disputes can arise from changes in property ownership, conflicting property descriptions, or even changes in the physical property. Just as...

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Business Liability for Labor Contractors

On September 28, 2014, California Governor Jerry Brown signed into law Assembly Bill 1897, which created a new Labor Code section. The new law affects businesses that obtain or are provided workers to perform labor from a labor contractor. Once AB 1897 becomes effective, private employers can be held liable for labor contractor’s failure to pay all required wages or to secure valid workers’ compensation coverage for contract workers. Under AB 1897, a business can be...

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