Remedies for Breach of Contract

A breach of contract occurs when one or both parties fail to fulfill their obligations as outlined in the contract. In a mutual breach, both parties decide to neglect the agreement. Breaches of contract can occur for various reasons, foreseen or unforeseen. However, remedies exist.

The appropriate remedy will depend on the severity of the breach, the terms of the contract, and the dispute’s specific circumstances. Applicable laws, which vary by state, will also dictate potential remedies.

Contract law requires the breaching party (defendant) to pay monetary damages to the non-breaching one (plaintiff) or compensatory damages - financial compensation awarded to the plaintiff. Compensatory damages seek to restore the non-breaching party to his or her previous position by covering any loss resulting from the non-compliance.

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