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Common compensation methods for a breach of contract

When you enter into a contract, you expect the other party to fulfill their end of the bargain. However, in the real world, this doesn’t always happen.

If a person or business has breached a contract with you, you may be wondering what recourse you have. After all, their breach of contract may have cost you a lot of time and money.

Providing relief

When someone breaks a contract, the other party is entitled to relief. You can obtain this relief in a few different ways. Here are three common ways that you can seek compensation for a breach of contract.

1. Damages

Damages are the most common form of relief for a breach of contract. Damages are losses that a person or business suffered as the result of another’s action. In these cases, a judge will award payment to you for the damages you suffered as a result of the breach.

2. Specific Performance

Though your contract required another party to perform an action, they may have neglected to do so. Despite their negligence, you may still be reliant on them to deliver on their promises. In these cases, the best form of relief may be for a court to mandate the breaching party to perform specific actions for your benefit.

3. Restitution

A breach of contract can have devastating effects on a business. In these cases, you may sue for restitution. Restitution means that the breaching party will be responsible for restoring you to the position you were at before the breach of contract.

Pursuing action for a breach of contract

If you have suffered due to another party’s failure to uphold a contract, you can pursue legal action to obtain relief. However, before deciding how to proceed, you should obtain legal counsel from an experienced business litigation attorney.

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