What Types of Remedies Are Available in Breach of Contract Litigation?

 Posted on August 20, 2021 in Business Law

Businesses often rely on contracts to protect their rights and financial interests. A legally binding contract will ensure that both parties will meet their obligations, which may include making payments by a certain date, performing certain types of services, or following restrictions such as the non-disclosure of sensitive information. If one party fails to follow the terms of a contract, this can cause problems for the other party, including financial losses or the disruption of business operations. In these cases, a business may pursue litigation to address a breach of contract, and if they can show that the other party did not meet their contractual obligations, the court may award certain types of remedies.

Options for Resolving Breach of Contract Issues

When considering an alleged breach of contract, a court will look at factors such as the nature of the breach and the harm caused to one party by the other party’s failure to meet their obligations. A material breach of contract will involve a substantial failure by one party to abide by the terms of the contract, and in these cases, the other party may be released from their contractual obligations, and the breaching party may be required to take certain actions. A partial or minor breach of contract will usually involve a less significant violation of the contract’s terms, and the non-breaching party may still be required to meet their obligations, but the other party may be required to address the non-breaching party’s losses or damages.

The remedies that may be ordered by a court in a breach of contract case may include:

• Compensatory damages - The party that breached the contract may be required to provide financial compensation to the other party to address the losses that resulted from the breach. 

• Liquidated damages - If a contract states that one party will pay the other a certain amount if they commit a breach of contract, the breaching party may be ordered to pay this amount.

• Specific performance - The breaching party may be ordered to take certain actions to fulfill their contractual obligations as closely as possible to what is specified in the contract.

• Cancellation and restitution - The contract may be canceled, eliminating the non-breaching party’s requirements to meet any obligations under the contract. In these cases, the breaching party may be required to pay restitution to restore the non-breaching party to the position they were in before entering into the contract.

• Punitive damages - If the court finds that the party who breached the contract committed illegal or wrongful acts, such as fraud, it may order that party to pay monetary damages as a punishment.

Contact Our Oakland Park Contract Litigation Lawyer

Elliot Legal Group provides representation in contract disputes and other types of business litigation. We can help a company demonstrate that a breach of contract occurred or defend against the claims that they have violated the terms of a contract. We will work to protect our clients’ rights and help them resolve these matters in a way that protects their financial interests. To get the legal help and representation you need, contact our Pompano Beach contract dispute attorney at 754-332-2101. 

Sources:

https://www.thebalancesmb.com/breach-of-contract-398138

https://openstax.org/books/business-law-i-essentials/pages/7-3-breach-of-contract-and-remedies