Orange County Litigation Lawyer Discusses Remedies for Breach of Contract

July 6, 2016

It’s essential for companies to be able to rely on a variety of contracts to conduct business. At a basic level, a contract is an agreement between two or more parties in which goods or services are received in exchange for consideration. Normally, contracts are mutually beneficial, but that can change when one party doesn’t comply with the terms. Contracts are breached nearly every day, and that is why it is essential to work with experienced Orange County litigation lawyers. Typically, relying on a business litigation attorney is the only way to find out which breach of contract remedies are available to you.

California law has stipulated a number of remedies that are available to wronged parties. These remedies come in various forms, and occasionally the non-breaching party is entitled to more than one form of relief. Financial compensation is the remedy that is most often requested after a contract is breached . This compensation, or monetary damages, is broken down into several sub-categories.

For instance, a party may be entitled to direct damages, which is an amount equal to its actual monetary loss. In some cases, consequential damages are also sought. These are financial losses, like lost profits, that result indirectly from the contract breach. Contract-specified damages may also be available if the original agreement provided for recovery of attorney fees or other expenses. Rarely, wronged parties are able to ask for and obtain punitive damages when the behavior of the other party was particularly reprehensible.

In addition to financial compensation, the plaintiff may also seek injunctive relief. This remedy is also broken into various sub-categories. The first of these is specific performance, in which a judge orders the breaching party to fulfill the terms of the agreement. It’s also possible for the court to order a rescission in which the contract is cancelled in its entirety and all parties are effectively restored to their original positions. The third type of injunctive relief is reformation. For this breach of contract remedy, the judge works with the involved parties to restructure or reform the contract in a manner that’s agreeable to everyone.

Orange County litigation lawyers like the practitioners at Fitzgerald Yap Kreditor are qualified to help you seek all remedies after a contract has been breached. If you need guidance and advice on these and other business matters, call 949-788-8900 today.