Commercial contracts are a key element for the business world. They make sure that people and companies keep their promises and fulfill their obligations. In essence, contracts are an idea backed by trust, and that trust is backed by the legal system. However, it is important to remember that no matter whether a contract is written or oral, it is legally enforceable.

When people or companies do not comply with a particular term of a contract without a legitimate excuse, it is called a breach of contract. There are many ways someone can breach a contract. It may include not completing a job, starting a job too late, not delivering goods as promised, not paying on time, not paying in full, or any move on your part that shows you will not complete your job as promised (referred to as non-compliance). anticipated).

A breach of contract may occur one time or it may be a series of continuing breaches; if this occurs, the injured party may file a civil lawsuit. Remedies for contractual breaches are not designed to penalize the breaching party, however, they are intended to place the injured party in the same position they would be in were it not for the breach.

When a contract is broken, the non-breaching party is relieved of its obligations under the contract due to the other party’s breach. When this happens, the courts may very well award damages as a result of the breach. In cases where monetary damages are inadequate to compensate the injured party, a court may award “specific performance,” forcing the offending party to perform their part of the agreement (contract).

As discussed above, there are two general categories of compensation for breach of contract: damages and performance. Damages refer to monetary compensation, while performance involves forcing the breaching party to do what they originally promised to do in the contract. A commercial litigation attorney who specializes in contract law can help you determine which method is best for resolving your particular contract dispute.

Before filing a breach of contract lawsuit, you should learn more about the different types of remedies available to you. Some people simply want monetary compensation to make up for the wrong the other party caused them, while others want them to honor their end of the agreement.

Money damages may include compensatory damages (compensation for your losses), consequential and incidental damages (foreseeable damages), attorneys’ fees (can only be recovered if included in the contract), liquidated damages (must be specified in the contract if there is a fraud), and punitive damage.

Of course, the relative applicable laws and the particular conduct of the infringing party will determine what type of damages are awarded and how much. The more unconscionable the conduct, coupled with the intentional behavior, the greater the chance that you will be awarded larger punitive damages in the name of the breach. In cases where the breach arose from gross negligence, compensatory and consequential damages are more likely to be received.

When money cannot make up for the damage, the other party is sometimes ordered to perform their duties. This remedy is more common with real estate transactions, as courts prefer not to get involved in monitoring because it is too time and money consuming.

Other remedies include rescission in which the contract is terminated and both parties are released from further performance and deposits are returned. Another option is the reform in which the terms of the contract are modified to adapt to the original intention of both parties.

Before filing a lawsuit, you should discuss your case with a business litigation attorney who can review the contract for you. There may be limitations or notice requirements contained in your contract that may have waived your ability to pursue contractual remedies. An attorney will also give you a clear idea of ​​how much a full litigation would cost. There may be alternative dispute resolutions available to you that can save you money and time in the long run.