Efficient And Effective Business Litigation

What are the remedies for breach of contract?

On Behalf of | Dec 14, 2021 | Contract Disputes |

Damages for breach of contract are important for businesses and others harmed by a contract breach. It is helpful to be familiar with the different types of contract damages and how they may be able to provide relief to those harmed by a breach of contract.

Damages for a breach of contract

There are generally two broad categories of damages for breach of contract including compensatory damages and punitive damages. Punitive damages are typically not available in breach of contract cases. Breach of contract damages include compensatory damages which are designed to compensate the nonbreaching parties for their losses resulting from the breach of contract. Compensatory damages can include general damages and special damages.

General damages include compensation for the losses that are incurred directly and necessarily from the contract breach. These are the most common damages for a breach of contract. Special damages may be available to compensate the nonbreaching party for losses that may not be ordinarily expected and may not be compensated through an award of general damages. Special damages cover losses caused by the breach but not necessarily in a direct or immediate way.

Damages for a breach of contract may be available in situations when an employment contract has been breached as well as in other breach of contract situations. Breach of contract damages are intended to help put the nonbreaching party in the situation they would have been in, as much as possible, had the breach of contract not occurred. Breach of contract can cause significant economic harm which is why it is important to be familiar with breach of contract remedies and the legal resources available to the nonbreaching party.