A breach of contract in a business setting can be devastating for both parties, leaving the merchant without necessary inventory while also leaving the supplier in a poor position if they failed to deliver goods in a timely fashion. If another party has failed to fulfill its obligations pursuant to your agreement, you may be able to recover damages or find another way to resolve matters.
What are my potential remedies?
If another party has committed a material breach of contract, or a breach that has negatively impacted your company, the court may attempt to remedy the situation in one of more of the following ways.
Monetary damages
If the court determines that another party’s breach of contract has caused financial harm to your business, it is likely that you will be awarded monetary damages. Monetary damages may include:
- Compensatory damages – Damages awarded to the non-breaching party for the actual monetary loss suffered as a result of the breach.
- Nominal damages – A small amount of damages (often $1) awarded in situations where there was a breach of contract but no financial loss.
- Liquidated damages – Damages that are specified in the parties’ contract and awarded accordingly.
- Quantum meruit – Damages awarded based on its valuation of the work performed.
Punitive damages
While punitive damages are rare, they can be awarded it situations where the court finds the breaching party acted maliciously or willfully committed wrongdoing.
Recission and restitution
Recission essentially allows the non-breaching party to cancel the contract and restitution requires that the breaching party restores the other party to the position it was in before the breach occurred.
Specific performance
The court may order the breaching party to fulfill their obligations as specified by the terms of the contract, especially if the parties’ contract lists specific performance as an option.
The damages you recover in a business litigation dispute depend on the specifics of your case. A Chicago attorney can evaluate your contract and advise you on next steps.
