If your contract has been breached, what are some remedies available to you?
There are a variety of money damages available to the non-breaching party, which include
- Compensatory Damages.
Money that compensates the non-breaching party for the direct harm, injury, or loss sustained as a result of the breach.
- Consequential Damages.
Money compensated to the non-breaching party for the indirect harm, injury, or loss—that was reasonably foreseeable—resulting from the breach.
- Punitive Damages.
Money recoverable, which is designed to punish the breaching party and to deter further breaches. As a general rule, the non-breaching party cannot recover punitive damages for a breach of contract, unless the breaching party also committed a tort, such as intentional infliction of emotional distress or interference with one’s right to contract.
- Nominal Damages.
A small or nominal amount of money may be recoverable simply to make a point, or when only a “technical” injury occurred, which resulted in no actual harm to the non-breaching party.
Because you can sometimes breach an agreement without even knowing it, make sure you know what your obligations under your agreements are, and fulfill those obligations as agreed to.
Until next time, think ASSET PROTECTION!