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Types of damages awarded in a breach of contract case

| Apr 8, 2020 | Commercial Litigation |

You may have what you believe is a foolproof contract; clear, thorough and mutually beneficial for you and the other involved parties. Then one day a dispute arises regarding poor performance or services undelivered and you find yourself in the middle of a legal battle. Such battles can harm the success of your business and make for a lengthy, draining court process.

That is not to say, however, that a response to a breach of contract is unnecessary. On the contrary, standing up for your business interests in these disputes may help maintain—or even save—your professional future. Breach of contract issues are not uncommon, and these are the possible damages plaintiffs receive in a lawsuit:

  • Liquidated – Liquidated damages include damages that are meant to cover an estimate of actual damages resulting from the matter or matters that led to the breach. They are usually addressed in the contract itself in case of a breach.
  • Compensatory – A compensatory damage should make up for the financial losses in such a way that it is as if the breach of contract had not happened at all.
  • Nominal – Nominal damages are awarded when a legal wrong has been done. Typically, these damages are a simple $1 technicality as there may have been no actual financial loss in the breach.
  • Punitive – Punitive damages are awarded to the plaintiff as a consequence of the breaching party’s actions. These will vary in amount and, in general, this type of remedy is uncommon in a breach of contract scenario.

Every case is different and will call for different types of damages, as well as differing amounts in financial recovery. Whether you find yourself defending a breach of contract dispute or seeking damages on behalf of your business, it is important to seek the help of an experienced attorney or otherwise qualified contract professional.