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What are the remedies for a breach of contract?

A breach of contract occurs when someone fails to perform a necessary condition under a valid contract. Necessary conditions are the elements in the contract that both sides agree to perform. A breach of contract occurs when one party fails to deliver on the promises they made in the agreement.

If you sign a contract that is breached, you may be able to receive damages (or compensation). There are various types of damages, depending on the type of harm or breach you suffered.

General damages are the most common type of damages that you can receive. They cover the loss directly incurred due to the breach of contract. For example, you pay Company A to deliver a box of a certain kind of widgets to your business. In turn, Company A fails to deliver the specific type of widgets you paid for and refuses to correct the order. You may sue for breach of contract to recover the money you paid to Company A and for additional expenses incurred while you purchased alternative widgets for your business.

Special damages are given when there are special circumstances or conditions not usually present in a contract. Special damages (or consequential damages) are awarded for actual harms incurred but are not ordinarily predictable. For example, if Company A knew that you were on a tight deadline to display the widgets during a demonstration, you may recover additional costs to rent replacement widgets for the display.

If you believe that a former business partner breached a contract with your company, then you may want to contact a lawyer. Hopefully, the issue is resolvable without resorting to litigation. Regardless, it is always a good idea to have a lawyer on your side. A lawyer can help you anticipate potential business and legal pitfalls and avoid them. An attorney can help you craft a contract that has clear unambiguous terms. And if that contract is breached, the attorney can work to get you get a satisfactory resolution.

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