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Breach of contract remedies beyond monetary damages

Contracts often form the backbone of many business transactions in Moorestown. Some are simple, others complex, but what they all have in common is that both parties expect that they will be dutifully honored. Unfortunately, this does not always happen. One party will fail to live up to their part of the deal, resulting in a breach of contract.

When this happens, sometimes, the only option the aggrieved party has is to file a lawsuit. There are a number of remedies they may seek.

In many cases, the plaintiff in such cases pursues monetary damages for their losses. But, for one reason or another, some plaintiffs find that monetary damages will not make them whole. Fortunately, there are two other remedies they may seek: specific performance; and cancellation and restitution.

Through specific performance, the party that breached the contract will be ordered by the court to perform what it agreed to do under the contract. This remedy may come into play, if the subject matter of the contract is something that is so rare or unique that monetary damages would not put the plaintiff back in the position he or she would be in should the contract never have been breached.

Another remedy for breach of contract is cancellation and restitution. In this remedy, the plaintiff is allowed to cancel the contract and then file a lawsuit against the breaching party for restitution. This remedy is appropriate if the plaintiff has already performed at least in part under the contract, and thus giving some sort of benefit to the party that breached the contract.

Through restitution, the plaintiff is being put back into the place he or she would be before the contract was breached. Meanwhile, since the contract itself has been cancelled, neither party has to perform any part of their duties under it.

While these two remedies may seem straightforward, in fact, they are actually quite complex processes to seek. Therefore, businesses who find they have suffered from a breach of contract, and believe that monetary damages will not suffice to make them whole, may want to make sure they seek the advice of an attorney familiar with business transactional law before moving forward.

Source: FindLaw.com, "Breach of Contract and Lawsuits," accessed on Nov. 20, 2016

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