Breach of Contract in Business: 6 Common Remedies
Accusations of contract breaches can get complicated very quickly, but there are remedies worth pursuing when this legal issue occurs. Let’s cover six of the most common remedies that occur during business & commercial litigation in Denver.
#1- Monetary Damages
Monetary damages can take on several forms when it comes to contract breaches, but each of these measures involves some sort of compensation going to the non-breaching party. This remedy is the most common one pursued, and when this route is completed, monetary or compensatory damages require the breaching party to pay the non-breaching party the amount they were promised within the contract. Punitive damages and nominal damages are included in this remedy type.
Rescission is one of several legal remedies for breach of contract. Rescission includes revoking, canceling, annulling, or otherwise repealing the agreement in its entirety. This step is used to legally undo the agreement and place both parties in their pre-contract position.
One of the most common contract remedies is restitution. Restitution is the act of one individual repaying a benefit to another when that person received said benefit at the other’s expense. It’s usually quite a straightforward process that works in plenty of cases.
Contract reformation involves both parties working toward correcting the discrepancies that occurred. When a breach of contract has occurred, the non-breaching party may select a list of equitable remedies to pursue with the breaching party. This step is often taken to avoid contract litigation.
Specific performance is when courts verify the breach of contract and force the breaching party to either perform the service or deliver the product they promised in the contract. Usually, these remedies are only ruled when no other type of remedy will work (ex: the product is priceless and currently in the breaching party’s possession).
#6- Contracted Remedies
In some contracts, breaches are covered in the terms listed. This might include a clause that details what each party is required to pay in the event of a contract breach. This term is also referred to as liquidated damages, which usually take the form of fines that are calculated depending on specific contract variables, such as time.
If you’re involved in a breach of contract dispute, whether you’re the non-breaching party or the accused breaching party, it’s in your best interest to contact a commercial litigation attorney in Denver. Mr. Boyle at Boyle Law Firm is an experienced litigation attorney, so if you’re looking for professional, dedicated representation, contact Boyle Law right away to schedule a consultation.