Contract Disputes & Enforcement
Justice of the Peace Courts provide an accessible forum for resolving contract disputes when the amount in controversy does not exceed $5,000. Whether the dispute involves a written agreement, an oral promise, or an implied contract, JP Court can hear the case and render a binding judgment.
What Is a Contract?
Section titled “What Is a Contract?”Under Louisiana law, a contract is an agreement by two or more parties whereby obligations are created, modified, or extinguished. A valid contract requires:
- Capacity — The parties must have legal capacity to contract (not minors or interdicts, absent proper representation)
- Consent — Both parties must freely agree to the terms
- Object — The contract must have a lawful purpose
- Cause — There must be a reason or motive for the obligation
Contracts may be written, oral, or implied by conduct. While some contracts must be in writing (such as contracts for the sale of immovable property), most everyday agreements can be enforceable even without a written document.
Types of Contract Cases in JP Court
Section titled “Types of Contract Cases in JP Court”Service Contracts
Section titled “Service Contracts”Disputes over services are among the most common contract cases in JP Court:
- Home repair and renovation agreements
- Lawn care and landscaping services
- Auto repair and maintenance
- Professional services (accounting, consulting)
- Personal services (cleaning, pet care)
- Construction and handyman work
In service contract disputes, typical issues include:
- Work was not completed as promised
- Quality of work was deficient
- Work was completed but payment refused
- Extra charges beyond the agreed price
Sales Contracts
Section titled “Sales Contracts”When a buyer and seller dispute the terms of a sale, JP Court can resolve the matter if the amount in dispute is $5,000 or less:
- Sale of used vehicles between private parties
- Sale of equipment, furniture, or electronics
- Disputes over warranties or representations
- Claims of defective goods
- Non-delivery after payment
Loan and Credit Agreements
Section titled “Loan and Credit Agreements”When someone borrows money and fails to repay according to agreed terms:
- Personal loans between individuals
- Promissory notes and IOUs
- Lines of credit with fixed repayment terms
- Co-signer disputes
Lease and Rental Agreements
Section titled “Lease and Rental Agreements”Beyond landlord-tenant evictions (which have their own procedures), JP Court handles:
- Equipment rental disputes
- Vehicle lease disagreements
- Storage unit contracts
- Rental of personal property
Breach of Contract
Section titled “Breach of Contract”A breach of contract occurs when one party fails to perform their obligations under the agreement. The non-breaching party may seek damages in court.
Types of Breach
Section titled “Types of Breach”Material Breach: A significant failure that defeats the purpose of the contract. The non-breaching party may be excused from further performance and may recover damages.
Minor Breach: A partial failure that does not undermine the core purpose. The contract remains in effect, but the non-breaching party may recover damages for the specific shortcoming.
Anticipatory Breach: One party clearly indicates they will not perform before performance is due. The other party may treat this as a present breach and sue immediately.
Proving Breach of Contract
Section titled “Proving Breach of Contract”To prevail in a breach of contract case, the plaintiff must prove:
- A valid contract existed — Either written, oral, or implied
- The plaintiff performed their obligations — Or was excused from performance
- The defendant failed to perform — Breached one or more terms
- The plaintiff suffered damages — A quantifiable loss resulted from the breach
Written vs. Oral Contracts
Section titled “Written vs. Oral Contracts”Written Contracts
Section titled “Written Contracts”Written contracts are easier to prove because the terms are documented. When suing on a written contract:
- Attach a copy of the contract to the petition
- Highlight the specific provisions that were breached
- Show that the defendant’s signature appears on the document
The written document generally controls, and the court will interpret the contract according to its plain language.
Oral Contracts
Section titled “Oral Contracts”Oral contracts are enforceable under Louisiana law for most types of agreements, but they present proof challenges. To establish an oral contract:
- Testify about the agreement’s terms
- Present witness testimony from anyone who heard the agreement
- Show course of dealing or partial performance consistent with the claimed terms
- Provide communications (texts, emails, voicemails) referencing the agreement
The statute of frauds requires certain contracts to be in writing, including contracts for the sale of immovable property. However, most personal service contracts, loans between individuals, and everyday commercial agreements do not require a writing to be enforceable.
Implied Contracts
Section titled “Implied Contracts”An implied contract arises from the conduct of the parties rather than express words. For example:
- A person takes a car to a mechanic who performs work without discussing price — an implied contract to pay reasonable value exists
- A contractor begins work on property with the owner’s knowledge and the owner does not object — an implied contract may arise
To prove an implied contract, show:
- Services or goods were provided
- The recipient knew and accepted them
- The provider expected payment
- Payment of reasonable value is customary
Damages for Breach of Contract
Section titled “Damages for Breach of Contract”When a contract is breached, the non-breaching party is entitled to be placed in the position they would have occupied had the contract been performed.
Types of Recoverable Damages
Section titled “Types of Recoverable Damages”Compensatory Damages: The actual loss suffered, such as:
- Cost to complete work the defendant failed to finish
- Difference in value between what was promised and what was delivered
- Out-of-pocket expenses caused by the breach
- Lost profits that were foreseeable at the time of contracting
Incidental Damages: Reasonable costs incurred as a result of the breach:
- Cost of finding a replacement contractor
- Storage fees for goods not delivered on time
- Additional transportation costs
Liquidated Damages: If the contract specifies a damages amount for breach, the court may enforce that provision if the amount is reasonable and not a penalty.
Damages NOT Recoverable
Section titled “Damages NOT Recoverable”JP Courts generally cannot award:
- Punitive damages (punishment beyond compensation)
- Damages exceeding the $5,000 jurisdictional limit
- Specific performance (ordering the defendant to perform) except in limited circumstances
- Attorney fees (unless the contract specifically provides for them)
Defenses to Contract Claims
Section titled “Defenses to Contract Claims”When sued for breach of contract, a defendant may raise various defenses:
Formation Defenses
Section titled “Formation Defenses”No Contract Exists: The parties never reached a meeting of the minds on essential terms.
Lack of Capacity: One party was a minor, interdicted, or otherwise lacked capacity to contract.
Vices of Consent:
- Error — A material mistake about a critical fact
- Fraud — Intentional misrepresentation inducing the contract
- Duress — Force or threats compelling agreement
Performance Defenses
Section titled “Performance Defenses”Substantial Performance: The defendant performed substantially, entitling them to payment minus cost of deficiencies.
Impossibility: Performance became genuinely impossible due to unforeseen circumstances.
Frustration of Purpose: The fundamental purpose of the contract was destroyed by unforeseeable events.
Other Defenses
Section titled “Other Defenses”Waiver: The plaintiff waived the breached provision through words or conduct.
Modification: The parties later modified the original agreement.
Accord and Satisfaction: The parties agreed to settle the dispute for a different performance.
Prescription: The statute of limitations has expired.
Offset: The defendant claims the plaintiff owes money, reducing or eliminating the claim.
Filing a Contract Claim
Section titled “Filing a Contract Claim”Information to Provide
Section titled “Information to Provide”When filing suit for breach of contract:
- Parties — The plaintiff’s name and the defendant’s full legal name and address
- The Contract — Describe the agreement (attach written contracts)
- Performance — Explain what the plaintiff did to fulfill their obligations
- Breach — Identify exactly what the defendant failed to do
- Damages — Specify the dollar amount sought (max $5,000)
Evidence to Gather
Section titled “Evidence to Gather”Evidence to support each element may include:
- The contract itself (written agreements, emails discussing terms)
- Proof of the plaintiff’s performance (receipts, photos, communications)
- Documentation of breach (defective work, non-delivery, non-payment)
- Calculation of damages (repair estimates, replacement costs, lost value)
- Witness testimony about the agreement and breach
Proving the Case
Section titled “Proving the Case”At trial, the plaintiff presents evidence in logical order:
- Establish the contract — Show the agreement and its terms
- Show performance — Prove the plaintiff did what was promised
- Prove the breach — Demonstrate the defendant failed to perform
- Calculate damages — Present evidence of the loss
The defendant has the opportunity to cross-examine witnesses and present their own evidence.
Prescription (Time Limits)
Section titled “Prescription (Time Limits)”Different prescriptive periods apply to contract claims:
| Contract Type | Time Limit |
|---|---|
| Written contract | 10 years |
| Oral contract | 10 years |
| Open account | 3 years |
| Promissory note | 5 years |
| Action for wages | 3 years |
If prescription has run, the defendant can raise it as a defense, and the court must dismiss the claim.
Special Situations
Section titled “Special Situations”Construction and Home Improvement Contracts
Section titled “Construction and Home Improvement Contracts”Disputes over home improvement work are common. Special considerations:
- Louisiana requires certain contractors to be licensed
- The New Home Warranty Act may apply to new construction
- Lien rights may affect property (but JP Court cannot enforce liens on immovables)
If a dispute involves significant construction defects exceeding $5,000, district court may be more appropriate.
Contracts with Businesses
Section titled “Contracts with Businesses”When contracting with a business:
- Sue the correct legal entity (LLC, corporation, sole proprietorship)
- Get the registered agent’s address for proper service
- Terms of service or click-wrap agreements may contain arbitration clauses
Consumer Protection
Section titled “Consumer Protection”Some consumer transactions have special protections under Louisiana law, including:
- Unfair trade practices
- Home solicitation sales
- Automobile lemon laws
These may provide additional remedies beyond breach of contract.
Section titled “These may provide additional remedies beyond breach of contract.”For information on filing procedures, see Civil Suits. For collecting on a contract judgment, see Judgments and Garnishment.