Remedies for Breach of Contract: Damages

A breach of contract involves a named party in the agreement breaking the terms of the contract. The other party is entitled to a remedy, or relief, under the law. The three most common remedies for a breach of contract include:

• Damages
• Specific performance
• Cancellation and restitution

Types of Damages

The remedy of damages is used the most often in the case of a breach of contract. Damages are a payment in some form that is made by the breaching party to the non-breaching party. There is a variety of kinds of damages, any they tend to be very specific to the kind of breach that has occurred.

Compensatory

The goal of compensatory damages is to put the non-breaching party in the position they would be in had the breach not occurred.

Punitive

Punitive damages are payments that the breaching party must make in a larger amount than would fully compensate the non-breaching party. These are rarely awarded in business contract settings as they are meant as punishment to a wrongful party for a particularly wrongful act.

Nominal and Liquidated

In the event that a breach results in no actual money loss to the non-breaching party proved, nominal damages may be awarded. Liquidated damages are specific damages identified by the parties in the contract itself should the contract be breached. They are a reasonable estimate of actual damages that might result from a breach.

Speak with an Austin Business Lawyer

If you are a business owner whose contract has been breached by a second party, a law firm that knows business will know how to remedy your case. Contact the Austin business lawyers of Slater, Kennon & Pugh Ltd.LLP at 512.472.2431 today.