Fortunately, there are a number of potential remedies for breach of contract. These have the right to variety from enforcing the terms of the contract to monetary compensation.

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If you or your organization is encountering a contract dispute, the knowledgeable commercial litigation attorneys at the Miller Law Firm can help. We can evaluation your contract and also aid you seek a remedy for breach of contract that will best compensate you for the breach.

Types of Remedies for Breach of Contract

There are several common remedies for breach of contracts. The proper remedy depends on the terms of the contract, the nature of the breach, and also the particular scenarios of the situation.


1. Compensatory Damages

An award of compensatory damages is the most common of the legal remedies for breach of contract.

The calculation of compensatory damages is based upon the actual losses you have sustained as a result of the breach of contract. They typically fall into two categories: expectation damages and also consequential damages.

Expectation damages

Expectation damages—also referred to as basic damages—are those that straight result from the breach of contract.

For example, imagine a agency that provides bus tours enters right into a contract to buy a bus for $100,000. However, the seller backs out of the contract and also refprovides to market the bus. The bus agency finds another seller through a similar bus, however they won’t take much less than $110,000. In that case, the expectation damperiods would be $10,000—the distinction in between the contract price and the amount the firm had to pay an additional seller for the very same product.

Consequential damages

Consequential damages are those that flow as a natural consequence of the breach.

Consequential damperiods regularly comprises earnings that a company shed as an outcome of the breach.

In the situation of the bus instance, imagine it took an added week to secure the new bus. As an outcome, the tour agency had actually to revolve ameans 1,000 customers that would have actually each paid $50 for a bus tour. In that instance, the agency can most likely recoup consequential damperiods for the $50,000 they shed in ticket sales.

Often the breaching party will attempt to avoid paying consequential dameras by claiming that they are too speculative or that they are not foreseeable. Also, sometimes parties to a contract might limit or preclude either party from respanning consequential damperiods. An skilled attorney can help you combat these arguments and also maximize your damperiods award.

2. Specific Performance

Specific performance is a form of remedy for breach of contract in which a court orders the bgetting to party to perform their end of the barget.

Monetary damages are frequently favored over specific performance as a remedy for breach of contract. However before, particular performance may be obtainable when monetary damperiods won’t adequately compensate you. For instance, they may apply to a contract for something that is unique and can’t be easily replaced.

In the bus instance over, monetary damperiods would certainly be adequate to compensate the tour firm for its loss. But imagine that the new bus had been used previously by a famed singer. The tour company wanted to use the bus for tours of the singer’s house tvery own. In that case, the tour firm can argue for particular performance rather than financial damperiods because no various other bus would be comparable to the one it contracted to buy.

3. Injunction

Injunctions serve a comparable objective as particular performance. The difference is that through certain performance, the court orders a party to perform something. With an injunction, the court regularly orders a party not to execute something.

An injunction may be permanent or momentary. Temporary injunctions are often ordered while litigation is pending to proccasion potential damages. For example, in a lawsuit that comes to a breach of a noncontend contract, a court could order the defendant to cease the allegedly competitive task until the lawsuit is readdressed. A irreversible injunction, as the name says, is long-term. A judge may problem a long-term injunction as part of their last ruling in a lawsuit.

4. Rescission

Rescission enables a nonbgetting to party to cancel the contract as a remedy for a breach. Rather than seeking financial damperiods, the nonbgetting to party can simply refusage to complete their finish of the baracquire. Rescission puts the parties ago in the place they would certainly have been in had actually they never gone into right into the contract.

However before, to justify rescission, the breach need to be product. That suggests that it has to go to the heart of the contractual agreement.

For instance, imagine that you contract to carry out catering solutions for an event. The contract calls for the other party to pay fifty percent the contract price by a specific date, yet they never before pay.

Since payment goes to the heart of the contract, you would be justified in rescinding the contract and also refutilizing to administer the catering services.

5. Liquidated Damages

Liquidated damperiods are a specific amount the parties agree to in the contract as compensation for a breach.

Contracts frequently use liquidated damperiods provisions where it could be difficult to calculate the correct amount of compensatory damages.

Real estate purchase agreements and also construction contracts typically rely on liquidated damages. They can be a details sum, such as the amount of the earcolony money on a purchase contract. Or they can depend on a formula, such as a particular amount of money for each day a deadline is not met. Partnership agreements are likewise most likely to incorporate liquidated damages provisions.

Although courts typically uphold liquidated damperiods clauses, they might neglect them if the amount of liquidated dameras is substantially smaller sized or greater than the worth of the actual harm the plaintiff has actually suffered.

6. Nominal Damages

A court might award nominal damperiods as a legal remedy for breach of contract as soon as the plaintiff cannot support their claim for compensatory damperiods. With nominal dameras, the court recognizes that a breach of contract emerged, however no harm have the right to be calculated.

While receiving nominal damages may feel prefer a pyrrhic victory, the plaintiff does acquire the advantage of the ruling in their favor. This might be ssuggest a moral victory, or it might pave the means for the plaintiff to seek one more form of legal action. If the contract has an attorney fee provision, an award of nominal damages may additionally allow the plaintiff to look for their attorney fees from the defendant.

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The Miller Law Firm: Your Contract Attorneys

To learn even more about potential remedies for breach of contract in your situation, call Miller Law. For even more than two years, we have actually served the company community in Michigan, and also we have actually reextended over $3 billion on befifty percent of our clients. We have the right to help you identify what types of remedies for breach of contract you could be entitresulted in collect. Contact us virtual currently or give us a contact to discuss your options.