When a breach of contract occurs, the non-breaching party may seek various remedies, depending on the circumstances and the available legal options. Common remedies include:
Damages: The most common remedy, damages aim to compensate the injured party for the losses suffered as a result of the breach. This can include compensatory damages, which cover actual losses, or consequential damages, which compensate for foreseeable damages resulting from the breach.
Specific performance: In cases where monetary compensation is inadequate, a court may order the breaching party to fulfill their contractual obligations as originally agreed.
Rescission: This remedy involves canceling the contract and restoring the parties to their pre-contract positions, effectively nullifying the agreement.
Reformation: When the contract’s terms are ambiguous or flawed, a court may modify or rewrite the contract to reflect the original intent of the parties.
Legal Process: To pursue a breach of contract claim, the non-breaching party typically initiates a lawsuit by filing a complaint in the appropriate court. The legal process may involve gathering evidence, presenting arguments, and potentially negotiating a settlement. The specific procedures and requirements can vary depending on the jurisdiction and the nature of the claim.