Common remedies for contract breaches

Contract breaches

Common remedies for contract breaches

When someone fails to fulfill their obligations in a contract, it can be incredibly frustrating and damaging to your business. In such cases, it is important to understand the available legal remedies for contract breaches.

Compensatory damages are a common remedy sought in a lawsuit against the breaching party. These damages aim to reimburse your company for the financial losses caused by the breach. The goal is to restore your business to the position it would have been in if the breach had not occurred.

Punitive damages, on the other hand, are rarely awarded and are only applicable in extreme circumstances. They serve as additional damages to punish the breaching party.

In some cases, monetary compensation may not be sufficient to rectify the breach. In such situations, the court may order specific performance, which requires the breaching party to fulfill their obligations as outlined in the original contract. However, specific performance is typically not ordered for service contracts, as it would force someone to provide labor against their will. It is more commonly used when a seller reneges on a contract to sell a unique or irreplaceable item.

Restitution is another potential remedy. If the court deems it just, they may order the breaching party to return any money or goods that you provided as part of the agreement.

Dealing with a breach of contract can be stressful, but understanding your legal options can help you plan your next steps and pursue the compensation you deserve.

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