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What damages are awarded for breach of contract?

On Behalf of | Sep 12, 2014 | Uncategorized |

Virtually every business in New York is a party to some kind of contract. Each of the parties has certain rights and responsibilities under the agreement. A breach of contract typically occurs when one of the parties fails to perform under the contract.

If a New York court rules that one party breached the contract, the prevailing party may be awarded damages. Typical damages awarded in these cases are aimed at restoring the injured party to a place where they would have been if the contract had not been breached. On occasion, damages may be awarded to punish the person who breached the contract.

In addition to damages, relief may be granted through other actions as well. One of these remedies is specific performance. This remedy requires the breaching party to hold up his or her part of the contract. This is normally done in cases where the goods or services provided for in the contract are unique in some way.

In the alternative, once the contract is breached, it may be canceled. At that point, neither party has any further responsibilities to the other. The party who was wronged can then seek restitution in court.

When most people enter into contracts, they intend to carry out their obligations. Unfortunately, not everyone either has the ability to uphold his or her responsibilities under the contract, or refuses to do so for some reason. Fortunately, there are legal remedies available to the wronged party. Deciding the best course of action in a particular breach of contract case, could require the advice and assistance of someone familiar with contract law.

Source: FindLaw, ““Breach of Contract” and Lawsuits“, , Sept. 8, 2014

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