Businesses rely on a wide variety of employees, contractors and other businesses every day. Companies need these contacts to fulfill their contractual obligations to keep their businesses a success from constructing storefronts to delivering products or supplies. Breach of contract can put the day-to-day operations of a business, its long-term success, and even its existence in jeopardy.
After breach of contract, the court may award damages to your business to offset the contract breach’s impact. These damages can come in many different forms.
Compensatory damages
A breach of contract can do damage to your company in a wide variety of ways. If the court awards your business compensatory damages, your business will receive damages that put your company in as good a position as it would have been if the other party fulfilled the terms of the contract.
Lost profits
In cases where a company can reasonably prove that the breach of contract caused lost profits and can establish that amount, the court may award them compensation for those lost profits.
Liquidated damages
Liquidated damages are a part of an initial contract to prepare for a potential breach of contract. If the losses from breach of contract may be hard to define or intangible, these terms allow the parties involved in the contract to protect themselves more fully in the contract terms.
Punitive damages
Because breach of contract is a serious violation of the law, the court may award punitive damages to punish the party that breached a contract.
Nominal damages
In cases where it is difficult to prove loss related to a breach of contract, the court may award nominal damages. These damages are usually a token amount such as one dollar.
These are only a few types of damages that the court can award in a breach of contract case. These damages can help business owners recover after a breach of contract and put their business back on track for success.
