A breach of contract can be tremendously disruptive to your business and can cause you to lose money. However, the law provides remedies. It is helpful to be familiar with what can be done about a breach of contract and what remedies may be available to you if you are on the receiving end of a contract breach.
Remedies for contract breaches
When a contract dispute arises, there are different options available to help remedy the situation based on the circumstances and different types of damages may be available. It is useful to know all of the different kinds of remedies for a breach of contract to be able to decide what the best course of action is for you.
One category of damages that may be available for a breach of contract is known as compensatory damages. These damages are designed to compensate the nonbreaching party for the harm they have suffered as a direct result of the breach.
There are two types of compensatory damages including general damages and special damages. General damages are intended to cover damages incurred directly and necessarily as a result of the breach. Special damages are damages suffered as a consequence of the breach that may relate to the special circumstances of the nonbreaching party.
In addition, punitive damages may also be available but damages to punish the breaching party are less common in contract dispute situations. Other options can include the court ordering specific performance of the contract or recission of the contract which may require the breaching party to perform or may mean voiding the contract altogether. Both contracts and the damages for violating them can be complex. Trained guidance can help you decide the best course of action for your business following a contract breach.