Usually, when two parties enter into a business contract, both intend to uphold their end of the deal. However, sometimes circumstances arise that make the terms of the contract less appealing or even impossible to uphold. If someone breaches their contract with your business, it can leave you in a lurch, financially, practically, or both.
Sometimes, it is possible to take your breach of contract case to court and receive compensation for your losses. Today, we’re looking into four types of damages you may be able to receive in a breach of contract case.
1. Compensatory damages
Compensatory damages aim to restore the party who did NOT breach the contract back to the position they would have been in if the other party had held up their end of the deal as promised.
2. Punitive damages
Punitive damages go beyond compensatory damages. The breaching party must not only restore the non-breaching party, but also give them more money beyond that. This is intended to punish the breaching party for the damage they have inflicted. It is rare for punitive damages to be awarded in business contract cases.
3. Nominal damages
Nominal damages are symbolic and usually not a lot of money. They are awarded in cases where perhaps the non-breaching party was not severely, if at all, impacted by the breach but still want to hold the other party accountable.
4. Liquidated damages
Sometimes a contract lists certain, specific damages that can be collected in case of a breach. These are referred to as liquidated damages. Usually the only liquidated damages that qualify to be collected in a business contract case are those that are reasonably calculated estimates of what losses would have (and did) occur as a result of a breach.
At Pence Law Firm, P.C. we understand the importance of business contracts and how much stress it can cause when you start incurring losses because someone you trusted didn’t do what they said they were going to do. That’s why we’re passionate about handling business litigation matters, including breach of contract. We find peaceful resolution whenever possible and fight for you in court when necessary. If you are a business owner in or around Jenks, Oklahoma and would like to learn more about our services, we encourage you to contact us today. We look forward to hearing from you soon!