As a business owner, you hope that you never run into issues associated with a breach of contract. However, the more contracts you sign, the greater chance there is that this will eventually happen.
If you find yourself dealing with a breach of business contract dispute, such as between you and a client, there are several steps you can take to find a resolution. Here are some of the most common remedies:
- Compensatory damages: This is the most common breach of business contract remedy, with the court ordering the party that breached the contract to pay a specific amount to the other party.
- Punitive damages: This remedy is reserved for situations in which the breaching party is punished for a morally reprehensible action, such as if they sold you an unsafe product.
- Nominal damages: These are typically awarded by the court when there is a breach of contract but neither party suffered harm as a result.
- Liquidated damages: These damages are outlined in the contract, noting what the parties agree to pay in the event of a breach.
While there are times when you have no choice but to take action as the result of a breach of business contract, you don’t have to immediately go down this path. For example, you may be able to work things out with the other party by sitting down and talking about what went wrong. You can also try mediation, with a mediator helping you find a resolution.
The most important thing to remember about a breach of contract is that you have legal rights. If they’ve been compromised, don’t hesitate to take the appropriate action.