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Breach of contract remedies

On Behalf of | Jan 29, 2016 | Uncategorized |

When discussing contract disputes, last week’s post briefly outlined a common reason for a contract dispute — that is, breach of contract. The post also briefly addressed the options available to someone who has been injured by a breach of contract, litigation or alternate dispute resolution. This week’s post will focus on litigation and the legal remedies available to New York residents in case of a breach of contract.

Generally, in a breach of contract case, the remedy revolves around monetary compensation. There are different types of monetary compensation available through litigation.

The most common type of breach of contract remedy is called compensatory damages. When this is awarded, it means the court is ordering the breaching party to pay the other person what they were entitled to but would have received elsewhere. For example, if the breaching party was supposed to provide a service for $50 and the injured party had to obtain that service elsewhere for $75, then they would be awarded $75 by the breaching party.

Another remedy is known as restitution. Put simply, this is the court ordering the breaching party to pay the other party back. Therefore, continuing the previous example, it would mean the breaching party would have to pay $50, rather than $75.

There are other types of monetary remedies available to non-breaching parties, including nominal, punitive and liquidated damages. In order to determine what legal remedy is available to someone who is involved in a breach of contract suit, it might be beneficial to approach an experienced attorney for guidance.

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