Fortunately, there room a variety of potential remedies for breach the contract. These can range from enforcing the regards to the contract to financial compensation.

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If friend or your business is facing a contract dispute, the knowledgeable commercial litigation attorneys in ~ the Miller legislation Firm can help. We deserve to review your contract and aid you go after a remedy for breach of contract that will best compensate you because that the breach.


Types of Remedies for Breach of Contract

There room several common remedies for breach of contracts. The appropriate remedy depends on the terms of the contract, the nature of the breach, and also the certain circumstances that the case.


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1. Compensatory Damages

An award of compensatory loss is the most common of the legal remedies because that breach that contract.

The calculation of compensatory damages is based on the actual casualty you have sustained as a an outcome of the breach the contract. They generally fall into two categories: expectation damages and consequential damages.

Expectation damages

Expectation damages—also referred to as general damages—are those that directly result from the breach the contract.

For example, imagine a firm that provides bus tourism enters right into a contract come buy a bus for $100,000. However, the seller backs the end of the contract and also refuses to market the bus. The bus agency finds an additional seller through a similar bus, but they won’t take much less than $110,000. In the case, the expectation damages would certainly be $10,000—the difference between the contract price and the amount the firm had come pay one more seller because that the same product.

Consequential damages

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

Consequential damages regularly comprises revenues that a agency lost as a an outcome of the breach.

In the situation of the bus example, imagine it took an extra week to secure the new bus. Together a result, the tour agency had to rotate away 1,000 customers the would have each paid $50 because that a bus tour. In that case, the company could likely recover consequential damages for the $50,000 they shed in ticket sales.

Often the breaching party will attempt to prevent paying consequential damages by claiming the they are too dangerous or the they are not foreseeable. Also, periodically parties come a contract might limit or preclude either party native recovering consequential damages. An knowledgeable attorney can assist you combat this arguments and also maximize your damages award.

2. Certain Performance

Specific performance is a kind of remedy for breach of contract in which a court order the breaching party to do their end of the bargain.

Monetary damages are generally favored over specific performance together a remedy because that breach that contract. However, particular performance may be obtainable when monetary damages i will not ~ adequately compensate you. Because that example, they may use to a contract for something the is unique and can’t be quickly replaced.

In the bus example above, financial damages would certainly be sufficient to compensate the tour company for its loss. But imagine that the new bus had been provided previously through a renowned singer. The tour company wanted to use the bus for tours that the singer’s home town. In that case, the tour agency could argue for particular performance rather than monetary damages due to the fact that no other bus would certainly be similar to the one it contract to buy.

3. Injunction

Injunctions offer a comparable purpose as details performance. The distinction is that with specific performance, the court assignment a party to carry out something. V an injunction, the court regularly orders a party no to perform something.

An injunction might be long-term or temporary. Short-lived injunctions are frequently ordered when litigation is pending to stop potential damage. For example, in a sue that comes to a breach of a noncompete contract, a court might order the defendant to stop the allegedly competitive task until the sue is resolved. A irreversible injunction, as the name suggests, is permanent. A judge may concern a permanent injunction as component of their final ruling in a lawsuit.

4. Rescission

Rescission enables a nonbreaching party to cancel the contract as a remedy because that a breach. Fairly than seeking monetary damages, the nonbreaching party can simply refuse to finish their finish of the bargain. Rescission put the parties back in the place they would have been in had lock never gotten in into the contract.

However, to justification rescission, the breach need to be material. That method that it needs to go come the heart of the contractual agreement.

For example, imagine that you contract to carry out catering solutions for one event. The contract needs the various other party come pay half the contract price through a particular date, yet they never pay.

Since payment goes to the love of the contract, you would certainly be justification in rescinding the contract and also refusing to administer the catering services.

5. Liquidated Damages

Liquidated damages space a specific amount the next agree to in the contract as compensation because that a breach.

Contracts often use liquidated damages provisions whereby it might be daunting to calculate the correct amount the compensatory damages.

Real estate purchase agreements and also construction contracts commonly rely ~ above liquidated damages. They can be a particular sum, such as the amount of the earnest money top top a acquisition contract. Or they can depend ~ above a formula, such as a certain amount of money for each job a attributed is not met. Cooperation agreements are likewise likely to include liquidated damages provisions.

Although courts frequently uphold liquidated damages clauses, lock may overlook them if the quantity of liquidated loss is considerably smaller or better than the value of the actual harm the plaintiff has actually suffered.

6. In the name Damages

A court may award nominal loss as a legit remedy for breach the contract as soon as the plaintiff cannot support their claim for compensatory damages. Through nominal damages, the court recognizes that a breach of contract occurred, however no harm can it is in calculated.

While receiving in the name damages may feel prefer a pyrrhic victory, the plaintiff does acquire the advantage of the judgment in their favor. This may be merely a moral victory, or it may pave the method for the plaintiff to pursue another type of legitimate action. If the contract has an lawyer fee provision, an compensation of nominal damages might also permit the plaintiff to seek their attorney fees indigenous the defendant.

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The Miller law Firm: her Contract Attorneys

To learn an ext about potential remedies because that breach the contract in her case, call Miller Law. For an ext than 2 decades, we have actually served the business community in Michigan, and also we have recovered over $3 exchange rate on behalf of our clients. Us can aid you identify what types of remedies for breach the contract you could be licensed has been granted to collect. Call us online currently or offer us a speak to to comment on your options.