Most Common Remedies for Contract Breaches

April 23, 2024

 

Contract breaches happen more often than you might realize. That’s why there can be a multitude of different remedies for various situations. Whether you are the victim of a contract breach, or the one being accused, not all breaches are created equal.   The remedies available following a breach of contract vary depending on both the contract itself and the unique facts surrounding the breach.  The business attorneys at Older, Lundy, Koch & Martino have the knowledge and experience to help you understand what remedies might be available to you.

 

Monetary Remedies

 

Perhaps the most common (and the most favored) form of remedy involves monetary settlement or judgment. People want to receive a check for their damages so they can recoup costs incurred by any necessary repairs or recover loss of profits that may have occurred. To get into the specifics, there are a few different types of money-based remedies that one might be entitled to.

 

Compensatory Damages

Plain and simple, compensatory damages are meant to directly compensate the non-breaching party for any damage suffered. This ranges from damage to your property, to the potential profits that might be lost due to not being able to conduct business.

 

Restitution

While compensatory damages focus on the non-breaching party’s loss, restitution is based on the breaching party’s gain. If the breaching party generated a certain profit from their wrongdoings, those profits be paid to the non-breaching party in the form of “restitution.”

 

Punitive Damages

There are times when the breaching party simply deserves to be punished for egregious conduct. When the breaching party has performed an undesirable act, so extreme that it would be deemed disgraceful or intolerable, additional damages might be available as a form of punishment and to deter similar conduct in the future.

 

Liquidated Damages

In some cases, parties to a contract will anticipate the possibility of a breach and address the damages beforehand. The contract itself will clearly state how much is to be paid in the event of a breach, and that prespecified amount is all a non-breaching party will be entitled to.  Liquidated damages can streamline the calculation of damages following a breach, but only if the underlying contract is properly drafted.

 

Nominal Damages

Sometimes, when a contract is breached, it can be difficult or even impossible to calculate damages. In situations like these, nominal damages may be available. As the name implies, nominal damages are generally very small, and provide little more than a legal “win” and validation to a non-breaching party. 

 

Non-Monetary

 

Not all contract breaches can be resolved with money. Some disputes require action.  Whatever the case, there are a few remedies available to help bring closure in these situations.

 

Specific Performance

For specific performance remedies, the breaching party can be ordered by a court to complete the actual terms of a contract.   

 

Injunction

An injunction can include specific performance, i.e, a court order requiring a breaching party to perform, however, injunctions are more often obtained to require a breaching party to stop performing a specific act.

 

Rescission

A rescission “un-makes” a contract. The parties to the contract are each placed back into the position they held before the contract was entered into and the contract is negated as if it had never existed.

 

Looking to Remedy a Contract Breach?

 

Our business litigation attorneys are here to discuss every remedy that might be available to you following a contract dispute or breach. Don’t settle for anything less! Call us today at 813-254-8998 and we will fight for your business’ best interest.

 

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