What is the type of monetary damage for breaching contracts?
Compensation for harms
Compensatory damages are the most typical kind of financial compensation sought in claims for contract breaches. The breaching party will be required to pay the non-breaching party enough to cover the reasonable cost of obtaining the goods or services they were promised elsewhere, according to the court’s order.
Another type of financial compensation sought in cases of contract breach is restitution. The party who violated the contract must make up the difference in compensation to the party who wasn’t in violation.
When a party breaches a contract, the non-breaching party may have previously completed some, but not all, of the required work. The non-breaching party in this situation may demand reimbursement for the portion of work completed before the breach.
Sometimes the terms of the agreement itself specify the course of action to be taken in the event of a breach.
Punitive damages are used to penalize the contract-breaching party. These are often only compensated if the party that breached the agreement committed a morally reprehensible act.