Contracts form the backbone of many business dealings in the Huntingdon Valley area. Unfortunately, sometimes one party does not meet their obligations under the contract, to the detriment of the other party. When this happens, the aggrieved party may want to pursue a breach of contract claim. The following is an overview of some types of damages that may be sought when a contract is breached.
One type of financial compensation a person may seek when a contract is breached are compensatory damages. Compensatory damages are meant to put the aggrieved party in the position they would be in if the breach had not happened.
A second type of financial compensation a person may seek when a contract is breached are punitive damages. Punitive damages go above and beyond what the parties contracted to and are meant to punish the breaching party for especially grievous behavior. It is rare for punitive damages to be awarded when a business contract is breached.
Sometimes the contract itself has provisions on what damages will be awarded if the agreement is breached. Liquidated damages must be a reasonable estimate of what a party would actually suffer if the contract is breached.
Not all damages in a breach of contract case are financial in nature. Sometimes specific performance is ordered if the subject matter of the contract is so unique that financial damages would not place the aggrieved party in the position they would be in if the contract had not been breached. Cancellation and restitution may also be an option in some cases. This post is for informational purposes only and does not contain legal advice. Those in Pennsylvania who want to learn more about breach of contract claims may find our firm’s website useful.