Breach of Contract

A breach of contract happens when someone fails to fulfill their obligations under an agreement — written or verbal. If that breach cost you money, you can sue for your losses in small claims court.

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Typical claim amount

$500 – $12,500

Statute of limitations category

Written contract (varies by state)

See your state's small claims rules

Pick your state above to see its claim limit, deadlines, and rules — or browse all state guides.

How much to ask for

The usual goal is to put you in the position you'd be in if the agreement had been kept — your actual losses from the breach. That often means money you paid and didn't get value for, plus extra costs you reasonably had to spend because the other side didn't follow through. Document each piece with receipts or estimates. Courts generally don't award damages that are speculative or that you can't tie to the breach.

How to pursue this claim, step by step

  1. 1

    Write down the terms of the agreement, whether it was a signed contract or a verbal deal, and what each side promised.

  2. 2

    Gather proof the agreement existed and that you held up your end — the contract, emails, texts, or witnesses.

  3. 3

    Document the breach and your resulting losses, with receipts or estimates for each cost.

  4. 4

    Send a written demand quoting the terms that were broken and stating your documented damages and a deadline to pay.

  5. 5

    Confirm you're within your state's deadline to sue, then file naming the right person or business entity.

  6. 6

    At the hearing, organize your evidence around three points: the agreement existed, they broke it, and it cost you money.

Common examples

Vendor didn't deliver goods or services as agreed

Someone broke a lease or rental agreement

Business partner didn't fulfill their obligations

Service provider didn't meet agreed-upon terms

Buyer backed out of a deal after you incurred costs

Evidence you should gather

The stronger your evidence, the better your chances. Start collecting these items before you file:

The contract itself (written, or your account of verbal terms)

Evidence the other party agreed to the terms (emails, texts, witnesses)

Proof you fulfilled your obligations under the contract

Evidence of the breach (what they failed to do)

Documentation of your financial losses

Any communication about the dispute

Ready to take action?

A demand letter often resolves disputes before court. Our free guide shows you how to write one in minutes.

Read the demand letter guide

Demand letter tip

Quote the specific contract terms that were violated. Attach a copy of the contract if written. For verbal agreements, reference any texts or emails that confirm the terms. State your exact damages with documentation.

Read the demand letter guide →

Court preparation tip

The judge needs to see three things: (1) an agreement existed, (2) the other party broke it, and (3) you lost money because of it. Organize your evidence around these three points.

What trips people up

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Not being able to prove the agreement's actual terms, especially for verbal deals.

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Claiming losses that are speculative or not clearly tied to the breach.

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Forgetting to show you did your own part of the deal.

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Missing your state's deadline, which can differ for written versus oral contracts.

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Suing the wrong party — confirm who actually made the agreement with you.

Filing deadlines by state

Your statute of limitations depends on your state. Here are some examples for this type of case:

StateDeadlineMax claim
Alabama6 years$6,000
Alaska3 years$10,000
Arizona6 years$5,000
Arkansas5 years$5,000
California4 years$12,500
Colorado3 years$7,500
Connecticut6 years$5,000
Delaware3 years$25,000
District of Columbia3 years$10,000
Florida5 years$8,000
Georgia6 years$15,000
Hawaii6 years$5,000
Idaho5 years$5,000
Illinois10 years$10,000
Indiana10 years$10,000
Iowa10 years$6,500
Kansas5 years$10,000
Kentucky15 years$2,500
Louisiana10 years$5,000
Maine6 years$10,000
Maryland3 years$5,000
Massachusetts6 years$7,000
Michigan6 years$7,000
Minnesota6 years$20,000
Mississippi3 years$3,500
Missouri10 years$5,000
Montana8 years$7,000
Nebraska5 years$7,500
Nevada6 years$10,000
New Hampshire3 years$10,000
New Jersey6 years$5,000
New Mexico6 years$10,000
New York6 years$10,000
North Carolina3 years$10,000
North Dakota6 years$15,000
Ohio8 years$6,000
Oklahoma5 years$10,000
Oregon6 years$10,000
Pennsylvania4 years$12,000
Rhode Island10 years$5,000
South Carolina3 years$7,500
South Dakota6 years$12,000
Tennessee6 years$25,000
Texas4 years$20,000
Utah6 years$20,000
Vermont6 years$10,000
Virginia5 years$5,000
Washington6 years$10,000
West Virginia10 years$20,000
Wisconsin6 years$10,000
Wyoming10 years$6,000

Frequently asked questions

Can I sue over a verbal agreement?

Often yes. Verbal contracts can be enforceable, but they're harder to prove. Texts, emails, witnesses, or a pattern of conduct can establish the terms. Some kinds of contracts must be in writing in many states.

What do I have to prove?

Generally three things: an agreement existed, the other party broke it, and you lost money as a result. Organizing your evidence around those points makes a clear case.

What damages can I claim?

Usually your actual losses from the breach — money paid without getting value, plus reasonable extra costs caused by the breach. Speculative or hard-to-prove losses are typically not awarded.

Do I have to try to limit my losses?

In many states you're expected to take reasonable steps to reduce your damages (called mitigation). Document the steps you took, since the other side may argue you didn't.

How long do I have to sue?

Your state's statute of limitations sets the deadline, and it often differs for written versus oral contracts. Confirm your state's window before filing.

Other case types

Security Deposit Not Returned

Your landlord won't return your security deposit

Unpaid Invoice or Loan

Someone owes you money and won't pay

Car Accident Damage

Someone damaged your car and won't pay for repairs

Contractor or Repair Disputes

A contractor did poor work or didn't finish the job

Defective Product or Service

Something you bought doesn't work and the seller won't fix it

Unpaid Rent (Landlord vs Tenant)

Your tenant owes rent and won't pay

Property Damage by Neighbor

Your neighbor damaged your property

Auto Repair Disputes

Mechanic overcharged, did bad work, or caused damage

Moving Company Damage

Movers broke or lost your belongings

Wedding Vendor Disputes

Wedding photographer, DJ, venue, or vendor didn't deliver

Bad Check or Bounced Payment

Someone paid you with a check that bounced

Pet-Related Disputes

Dog bite, vet malpractice, or pet purchase gone wrong

Roommate Disputes

Roommate owes rent, utilities, or damaged shared property

Online Purchase or Marketplace Disputes

Item never delivered, counterfeit, or not as described

Dry Cleaner or Laundry Damage

Dry cleaner ruined or lost your clothing

Travel and Airline Disputes

Airline, hotel, or travel company ruined your trip

Insurance Claim Disputes

Insurance company denied or underpaid your claim

Gym or Membership Cancellation

Gym or club keeps charging after cancellation

Towing and Vehicle Impound Disputes

Your car was illegally towed or you were overcharged

Home Appliance or Electronics Warranty

Manufacturer or retailer won't honor a warranty

Freelance or Gig Work Payment

Client won't pay for freelance or contract work you completed

Utility Billing Disputes

Overcharged by a utility company or service provider

Dental or Medical Billing Disputes

Overcharged for medical or dental services

Tenant Suing Landlord for Repairs

Landlord won't fix habitability issues in your rental

Last updated 2026-06-28.

General information to help you understand the process — not legal advice. Rules and dollar limits vary by state and change over time, so always confirm the current requirements with your court. See our Editorial Standards.

Ready to take action?

A demand letter is often the first step. Many breach of contract disputes are resolved without ever going to court.

Read the demand letter guide