Legal remedies in breach of contract cases

On Behalf of | Jul 26, 2018 | Real Estate |

Litigation can be a time consuming and expensive process, and businesses in Florida and around the country often choose to settle these matters at the negotiating table to avoid protracted legal battles. However, traditional negotiations and alternative approaches such as mediation do not always lead to an amicable resolution.

Monetary damages, which are known as remedies in law, are usually awarded to parties who prevail in court, but there are rare situations where judges may order the losing party to honor their commitments instead.

Monetary damages are usually awarded because the legal system is designed to resolve matters conclusively. This is why judges are reluctant to leave matters open-ended by ordering parties in breach of contract lawsuits to provide goods or services under a writ of specific performance. These writs are generally reserved for cases where a unique item is involved or a service is being provided that cannot be obtained elsewhere.

Parties who win breach of contract cases in court are usually awarded compensatory damages. The amount awarded is calculated to cover the costs of obtaining the goods or services involved elsewhere, but this amount may be reduced appropriately when the losing party has performed some of their duties under the agreement.

Punitive damages may also be awarded when parties have behaved particularly egregiously to deter others from acting in the same way. When contracts have been breached but no injury, loss or damage has been suffered by either party, judges may order nominal damages of $1 or a similar sum.

Attorneys with business law experience may seek to resolve contract disputes amicably whenever possible to avoid the uncertainty and expense of lengthy litigation. Attorneys could also seek to avoid these issues in the first place by ensuring that contracts are drafted properly and the parties involved understand their duties under the agreement.