As a business owner, you know that contracts are vital for doing business. Contracts set out the terms of an agreement between two or more parties and help to avoid disputes down the road. What happens, however, when one of the parties breaches a contract?
Our Pennsylvania business litigation attorneys discuss five common remedies businesses can use when their contract is breached. We will also explain how our team of attorneys at Weisberg Law can help you enforce your contract and get the damages you deserve.
#1. Compensatory Damages
Compensatory damages are the most common damages awarded in breach of contract cases. They are intended to put the non-breaching party in the position they would have been in if the contract had been performed as agreed. For example, if you hire a contractor to build a new wing on your office building, and they breach the contract by failing to complete the work, you would be entitled to compensatory damages for the cost of hiring another contractor to finish the job.
#2. Liquidated Damages
Liquidated damages are damages that are expressly provided for in the contract in the event of a breach. They are intended to provide a certain level of compensation to the non-breaching party and can be either a fixed amount or a formula for calculating damages.
#3. Rescission
Rescission is a remedy that allows the non-breaching party to cancel the contract and be returned to the position they were in before the contract was entered into. This is typically only available if the breach is material or goes to the heart of the agreement.
#4. Specific Performance
Specific performance is a remedy available in some breach of contract cases. It is an order from the court requiring the breaching party to perform their obligations under the contract. This remedy is usually only available if compensatory damages are not adequate to compensate the non-breaching party and if the subject matter of the contract is unique.
#5. Injunction
An injunction is a court order that requires the breaching party to take a specific action or refrain from taking a particular action. It is usually used to remedy a breach of contract case where one party has an ongoing obligation under the contract. The other party is in danger of suffering irreparable harm if the obligations are not met.
Have a Contract that has Been Breached? We Are Here to Help.
Our team of experienced attorneys at Weisberg Law can help you enforce your contract and get the damages you deserve if your contractual rights have been breached. Contact us today for a free consultation. We look forward to helping you resolve your dispute.
Get in touch with our team today at (610) 550-8042 to schedule a consultation!