When dealing with a possible breach of contract from another party, it may seem overwhelming at first.
However, knowing what typical remedies are for the situation can help you make the best choice possible to salvage your contract.
According to FindLaw, a contract is a promise or set of promises that one party makes to another. If the breached party does not fulfill one or more of these obligations to your standard, he or she fails to uphold his or her side of the agreement. This individual or business may also be at fault if the requirements are not completed within the time frame or to the specifications previously agreed upon.
Some breaches are immaterial, which are smaller in nature but still serious. However, material breaches do typically need a more complex remedy.
If a breach occurs, you may have to deal with a lawsuit. Typically, the courts award damages to the shortchanged party that did not receive their original promised good or service.
Compensatory damages pay for unfulfilled promises in the original agreement. This deal usually comes in the form of monetary compensation, which helps make up for the value of those promises. Punitive damages are similar in that they usually involve the breached party paying money, but differ in that the breached party pays the money towards fines rather than the fulfillment of a promise to you.
Beyond monetary remedies, some courts may order a remedy in equity. A specific performance involves the breaching party completing the service that was previously guaranteed. You may also have to deal with a canceled contract, which would result in the termination of the deal. Preparing for any of these possibilities can help you while dealing with a breach.