In a contractual relationship, it can happen that one party fails to perform to its part of the bargain. This situation is called a contract breach. A contract breach does necessarily means the end of the contract or does not require bringing the issue before a court. But in case of repeated breaches or substantial loss after one party did not perform its duty, you can decide, with the help of an attorney, to solve the issue.
Each contract is different and should include remedies to contract breaches. But there are some basic remedies that can be used to solve and settled contract breaches. The first remedy is to ask for compensatory damages. The other which failed to perform its duty will be asked to money to reimburse the other party to compensate for its loss. There is also another category of damages called consequential and incidental damages. One party can refer to them if the losses were foreseeable at the time of the contract and by both parties. Third type of damages: liquidated damages. Generally, the amount of these damages is stipulated in the contract. At last, one party can be forced to pay punitive damages in case of repeated wrongdoings. Such damages are however impossible to get in contract cases.
In addition to damages, one party can be forced to cover the attorney fees and costs of the other party if this clause was expressly stipulated in the contract. A court can also order the party to execute the specific performance exactly as specified in the contract. However, courts rarely order such extreme remedy except in real estate transactions or in other unique property, since the courts prefer not to have to monitor performance. The contract can also be simply canceled and both sides are excused from further performance and any money advanced is returned. Eventually, a contract can be reformed and the terms are changed to reflect what the parties actually intended.
In the event of a contract breach, parties are often well advised to directly negotiate a settlement through mediation and arbitration. This is more cost effective than simply filing a lawsuit and letting the court settle the dispute. Keep in mind that negotiation should always be preferred to lawsuits in contract law.
Check Out More Articles:
trial lawyers and nonverbal communication , Ohio medical negligence attorneys , lawsuits maytag appliances