What remedies can be received for breach of contract?

What remedies can be received for breach of contract?

On Behalf of | Oct 24, 2019 | Contract Disputes |

Louisianans who have a contract with another person or entity do so expecting that the parameters of the contract will be adhered to. However, issues can arise for a variety of reasons and there could be accusations of a breach of contract. With this or any other contract dispute, it is important to understand what steps can be taken to deal with the situation. Perhaps litigation will be needed to settle the matter. Or there could be room to negotiate and satisfy the parties. Regardless, having legal advice with a contract problem can be critical.

Once the contract requirements have been breached, to settle the case, certain remedies can be agreed to. In general, there are three remedies if a contract is breached. They are damages; specific performance; and cancellation and restitution. With damages, it means there will be payment of some form for the breach. That can include compensatory, punitive, nominal and liquidated damages.

Compensatory damages will return the party that adhered to the contract back in the position they were in before. Punitive damages require the party that breached the contract to compensate the other party in some way. Nominal damages are done as a gesture with no money changing hands. Liquidated damages are specific and were named in the contract.

Specific performance is when the damages are not sufficient and the party that did not breach the contract wants the breaching party to complete their duty under the contract. This is rarely ordered. Finally, cancellation and restitution simply means that the contract is cancelled by the non-breaching party which then files a lawsuit to be repaid should there have been benefits paid to the party that breached the contract.

Contracts can be complicated and it is common for there to be disagreements as to what the requirements were to fulfill it. Whether it is a party who is being accused of breaching a contract or those who say the contract was breached, having legal help can be critical to resolve the case. A law firm that specializes in business and understand breach of contract litigation can help and should be called for a consultation immediately.