When a contract has been breached, it can have a significant impact on the non-breaching party and their business or other endeavor. For that reason, those negatively impacted by a breach of contract should be familiar with the potential remedies that may be available to them.
Remedies for breach of contract
There are several different categories of contract damages that may be available to help the non-breaching party with the harm they have suffered.
- Monetary damages: there are several categories of monetary damages that may be available to remedy a breach of contract situations. Compensatory damages are designed to compensate the non-breaching party for the harm suffered as a result of the breach. Other categories of monetary damages can include liquidated damages, nominal damages and punitive damages which may be less common.
- Specific performance: in some situations, performance of the contract may be ordered as the remedy for a breach of contract. Specific performance of a duty in the contract may be ordered when monetary damages would not compensate the non-breaching party for the harm caused by the breach.
- Recission and restitution: in some circumstances, the contract may be canceled. If the breaching party has already received some benefit from the contract, they may be ordered to pay restitution for the benefit they have already obtained.
Compensatory damages may be awarded to a non-breaching party for the damages suffered as a result of the breach through a breach of contract claim. There are different ways to address a breach of contract, and different remedies available, depending on the situation and circumstances which is why it is helpful to have an understanding of the remedies available when a contract has been breached and a business harmed.