We enter into contracts when we contract employees, when we negotiate a deal with a business and in numerous other circumstances. However, the other party in the contracts we agree to may not always hold up its end of the bargain. In these situations, you may be able to seek different remedies in court — like financial compensation — from the party that has breached the contract.
If successful in a breach of contract lawsuit, three main kinds of remedies may be awarded. These include: (1) damages, (2) specific performance and (3) cancellation and restitution.
Damages: These relate to the actual monetary damages suffered by the party harmed by the breach of contract. These damages may relate to loss of business profits, property damage, monetary damages relating to delays, and so forth. Nominal damages might be awarded in some cases where no actual monetary loss occurred. Also, punitive damages might be awarded, particularly if the breach of contract was intentional.
Specific performance: This relates to the breaching party’s need to perform its services referenced in the contract. Sometimes specific performance is awarded as a remedy when monetary damages don’t suffice to make the non-breaching party whole.
Cancellation and restitution: When a non-breaching party sues for cancellation and restitution, it seeks to cancel the terms of the contract and to be paid back whatever remedies are necessary to bring the non-breaching party back to the original position it was in prior to entering the agreement.
Have you been financially harmed, or harmed in some other way, as a result of a breach of contract? By consulting with a Michigan commercial law attorney, you can learn about your legal rights and options.