A breach of contract can be serious for business owners and can have a significant impact on their business. It is useful for business owners who have a contract dispute to be familiar with the different remedies that may be available to them in circumstances when a contract has been breached.
What is a breach of contract?
A breach of contract generally refers to circumstances when one party to the contract has not fulfilled its obligations or responsibilities as agreed to in the contract. There are different categories of breach. Depending on the nature of the breach and the goals of the non-breaching party, different legal remedies may be available to help protect the non-breaching party.
Remedies for breach of contract
Breach of contract remedies can include:
- Monetary damages including compensatory damages, punitive damages, nominal damages or liquidated damages. Different types of monetary damages may be available based on the circumstances to compensate the non-breaching party for the harm suffered.
- Specific performance can include direction from the court that the party that is in breach needs to perform their obligations under the contract.
- Rescinding the contract may be ordered which cancels the contract and restitution may also be required from the breaching party to compensate the non-breaching party for the harm suffered.
A contract dispute can be stressful which is why it is useful for parties to a dispute to be familiar with how contract law protects them. Armed with that knowledge, they can seek the relief they need for the contract dispute.