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Common remedies used in contract disputes

A contract is a legally binding agreement between two or more parties. Generally, most contracts are honored. However, there are occasions when contracts may be breached.

If a contract breach is litigated, the court has different options in terms of remedies. Here are some of the most common remedies for a breach of contract.

Monetary damages

Monetary damages are the most common form of remedy for breaches of contract. The court will award a sum of money, taking into consideration the total losses of the adversely impacted party.

It’s important to note that monetary damages are not usually used as a form of punishment for the breaching party. The intention is not generally to punish the breaching party, but to reinstate the adversely impacted party to the position they would have been in should the breach have not occurred.

Injunctions or specific performance

Monetary damages are not always the most suitable option. In some cases, they can order the breaching party to do something or cease doing something. The remedy of specific performance is used to order the breaching party to carry out their part of the contract.

In cases where a contract is breached due to the actions of another party, rather than a failure to act, an injunction can be used to cease the unlawful actions. In a nutshell, specific performance requires the breaching party to do something, while an injunction orders the breaching party to stop doing something.

Contact breaches can be complex, and the remedies must be carefully thought through. Seeking legal guidance will help you to obtain a remedy that works for you.