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What types of remedies do judges impose in breach of contract cases?

On Behalf of | Dec 7, 2020 | Contract Law

Any two people or entities entering in to a contract do so with the expectation of some offer and consideration. The onus falls on the party offering a product or service to draft their terms, conditions, and expectations carefully. Their customer must read the contract over and abide by it. Instances in which either party fails to perform may result in a breach of contract lawsuit.

Remedies you can pursue in breach of contract cases

You can pursue various remedies in your breach of contract case, including compensatory and punitive or exemplary damages.

Compensatory damages are monetary awards that judges may offer a plaintiff if they didn’t receive their contracted services. Generally, this award is only enough to cover securing the product or service that the defendant initially promised. Judges may also order a defendant to pay restitution if necessary to restore the customer to their original status before the breach occurred.

It’s not uncommon for the court to order the payment of punitive or exemplary damages as well. A judge may award these in a case if they believe that the breaching party’s actions violated common moral turpitude standards or were a deliberate and knowing act of harm.

The court may award nominal damages in instances in which a plaintiff suffered no harm other than an inconvenience. Judges often do this to deter service providers from violating their contracts in the future.  An aggrieved party may also qualify to receive liquidated damages should a breach occur.

Courts may also order remedies in equity or injunctive relief resulting in a contract’s cancelation. In these cases, there is no need to deliver the promised products or services. Judges may order violating parties to provide specific performance or to deliver to promised goods or performance of services, though. Judges often order this in cases in which a product or service is unique.

What you need to do if you have a contract dispute

There are often stiff penalties associated with violating the terms of your contractual agreement. Doing so can cause external damage to your reputation as well. An experienced attorney can help you protect your Texas company’s bottom line and image.