Contracts are essential in both business and personal agreements. They define the expectations and responsibilities of everyone involved. However, there are times when one party does not fulfill their end of the contract, causing a breach. When this happens, remedies are needed to address the situation. This post will break down the various remedies available for breach of contract, including damages, injunctions, restitution, specific performance, and quasi-contracts.

Damages – Remoteness of Damages – Ascertainment of Damages

Damages are one of the most common remedies for breach of contract. They aim to return the injured party to the position they would have been in if the contract had been performed.

Types of Damages

1. Compensatory Damages: These cover direct losses due to the breach. For example, if a contractor fails to complete a home renovation on time, the homeowner may claim compensatory damages for the extra living expenses incurred during the delay.

   
   

2. Consequential Damages: Known as special damages, these arise from indirect consequences of a breach. For instance, if a delivery delay causes a retailer to miss a holiday sales window, they may claim loss of profits as consequential damages. Statistics show that 30% of businesses suffer significant revenue loss from unmet deadlines.

   
   

3. Punitive Damages: These damages punish the breaching party for severe misconduct beyond just compensating the non-breaching party. An example is when a supplier knowingly delivers defective products, harmful to consumers, prompting the court to impose punitive damages to deter such behavior in the future.