Donnelly Ritigstein Law Offices
Call for a Free Consultation
Toll Free 866-907-6368 Local 856-324-6147

What are the main remedies if a business contract is breached?

When there is a breach of contract in Moorestown, the injured party may have various remedies available. In general, the three basic types of remedies that may be available if a business contract is breached are damages, specific performance or cancellation and restitution. This post is going to focus on damages.

Paying damages to the non-breaching party in general is the most common form of relief when a contract is breached. Depending on the circumstances, there are various types of damages the injured party could pursue, such as compensatory damages, punitive damages and liquidated damages.

The goal of awarding compensatory damages is to put the injured party in the place they would be in if there was no breach of contract. This means that an injured person must prove what and how much they lost because of the breach. Even if a contract was technically breached, only nominal damages will be awarded if the injured party didn't really lose anything financially due to the breach.

The goal of awarding punitive damages if a contract is breached is to act as a punishment for the breaching party. These types of damages are not very common in the business world. Finally, liquidated damages are actually specified and agreed upon in the contract itself. It is a provision regarding what damages will be paid if the contract is breached. Liquidated damages, while the are agreed upon, must also be a reasonable estimate with regard to the actual amount of damages that could be incurred.

In the end, it is important that an appropriate remedy is reached when a contract is breached. This post is only provides general information on damages in a breach of contract situation and cannot serve as a detailed guide should a business contract be breached. If a business contract is breached, an attorney may be able to educate the injured party about what remedies they may pursue.

Source: FindLaw, "Breach of Contract and Lawsuits," accessed May 9, 2016

No Comments

Leave a comment
Comment Information

Moorestown Office
212 West Route 38
Suite 200
Moorestown, NJ 08057

Map & Directions

Haddonfield Office
132 Kings Highway E
Suite 105
Haddonfield, NJ 08033

Map & Directions

Linwood Office
327 Central Avenue
Linwood, NJ 08221

Map & Directions

Cape May Court House Office
618 Route 9 South
Cape May Court House, NJ 08210

Map & Directions

Gloucester, Cumberland and Salem County Offices
57 Euclid St.
Woodbury, NJ 08096

Map & Directions

Back To Top