Business deals in Cranston these days are often cemented by more than just a mere handshake. More often than not, a contract will be drawn up, establishing what goods or services are to be provided and how the provider of those goods or services will be compensated.
Unfortunately, there are times when a contract will be breached. This occurs when one party to the contract does not fulfill his or her duties under the contract. Perhaps the breaching party fails to perform his or her obligations under the contract on the agreed-upon time, does not follow the provisions of the contract or perhaps fails to do anything promised under the contract at all.
When a breach of contract occurs, the aggrieved party may pursue damages. Today we are going to focus on monetary damages. What type of monetary damages may be available after a breach of contract?
One type of damages that may be pursued are compensatory damages. These types of damages are meant to put the aggrieved party in the position they would have been in if the other party had never breached the contract. Another type of damages are punitive damages. Punitive damages are awarded in addition to those the aggrieved party would be compensated for. They are meant as a punishment for the breaching party. However, these types of damages are not often awarded.
A third type of damages are nominal damages. These damages are merely a “token,” which are given if the contract was breached but the aggrieved party did not suffer a monetary loss. Finally, there are liquidated damages. These are damages that are written in the contract itself, that state what the financial remedy should be if there is a breach of contract. Liquidated damages must be a reasonable calculation of what each party might be suffer financially if the contract is breached.
As you can see, determining what monetary damages may be available in a breach of contract case can be rather complex. Since this post can only describe the options available, and cannot serve as the basis for any legal action, it may be a good idea to sit down with an attorney, who can explain what types of damages may be sought in a person’s specific breach of contract situation.
Source: FindLaw, “Breach of Contract and Lawsuits,” Accessed January 3, 2017