Types of Damages for Breach of Contract

 Posted on June 07,2024 in Business and Commercial Law

Businesses and individuals alike rely on others to uphold their contracts every day. When another party you do business with materially breaches a contract, it can cause significant financial harm to your company. If a supplier breaches its contract, your business might not have the materials or supplies it needs to keep operating until the breach is remedied. If a client breaches a contract by failing to make scheduled payments for goods or services you have already provided, your business might be left without the funds it needs to pay expenses. There are several different types of damages you might be entitled to if another company or a client has failed to uphold the terms of its contract. A Hill County, TX breach of contract lawyer can help determine what rights you have in this situation.

Compensation and Remedies for a Material Breach of Contract 

There are a few different ways the party in breach of the contract can be ordered to remedy its failure to uphold its end of the bargain. Some involve paying financial compensation, while others involve more direct means of coming into compliance. Possible legal remedies include:

• Specific performance - You just need the other party to do what it promised to do in your contract. In this case, specific performance might be the remedy you would prefer. This remedy involves the court ordering the other party to fulfill its contractual obligations, whether that means delivering the supplies it promised to deliver or allowing you to use the event hall you rented for a conference. 
• Compensatory damages - Your business has lost money because of the other party’s breach and you need it to make up for those losses. Having the breaching party ordered to pay you the amount you lost due to its failure to follow the contract is the most common legal remedy. 
• Punitive damages - The other party willfully defrauded you or its breach was malicious. Courts sometimes order punitive damages in addition to compensatory damages to punish a party that acts with malice or breaks the law. 
• Rescission - You want to cancel the contract completely. There may have been a fundamental misunderstanding, or you have found that the business relationship is not working. The breaching part may still be ordered to compensate you for any losses. 

Contact a Hill County, TX Business Litigation Attorney

Cain & Kiel Law will do all it can to help your business obtain the legal remedy that is best for you after another party has breached a contract. Our experienced Cleburne, TX breach of contract lawyers will work closely with you to ensure that you always know exactly what progress is being made on your case. Contact us at 817-645-1717 to schedule a confidential consultation.