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What types of relief in a breach of contract claim?

On Behalf of | Sep 8, 2020 | Business Litigation, Business Transactions |

Businesses in California produce many different types of products and provide many different services. In order to do these things and run their business though, they rely on customers and other businesses. When businesses interact with others they are usually providing something in exchange for something else. They rely on these transactions and it is important that both sides of the transaction do what they say they were going to do.

It would be nice to simply be able to rely on people’s words, but that is not always a guarantee so to help ensure the transactions occur according to plan, it is important that businesses use well-drafted contracts. The contract will state each party’s responsibilities and provide them protection if the other side does not follow the contract. However, to enforce their rights in a contract the business may need to start a breach of contract claim.

If a business is successful in their breach of contract claim, there are a number of remedies that they could seek. One is compensatory damages, which would ensure that the breaching party puts the non-breaching party in the position they should have been in if the contract was followed. Another type of damage is punitive damages. These are designed to punish the breaching party. Businesses could also seek nominal damages which arise when there are generally used when the non-breaching party did not suffer major monetary damages. Liquidated damages is another type of damages. These are damages which are typically written into the contract itself in anticipation of a breach.

Businesses in California enter into many contracts. Most contracts are followed or breaches can be resolved in a relatively quick manner. However, sometimes breaches cannot be resolved and the business may need to start a breach of contract action to receive the damages they deserve under the terms of the contract. These can be complicated though and consulting with experienced attorneys could be beneficial.



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