Different Types of Remedies for Breach of Contract

A contract is a legally binding agreement legally binding and is enforced with the full weight of the courts. If either party to a contract does not perform as per the conditions of the contract, the other party could engage in legal proceedings. The party that fails to comply is the party that has breached the contract. A civil suit in breach of contract could be filed to seek a remedy for breach.

Most of the time, an event of an act of breach of contract happens when the party in question does not fulfil its obligations within a time limit. This can be caused by an unintentional or intentional inability, refusal, incompetence, or interfering. The non-performance could be either in whole or in part, or in a manner that is insufficient to satisfy any applicable standards, express implied warranties, or other agreed upon. This online management system like ContractSafe may be utilized to limit or limit specific remedies or obligations concerning certain types of violations.

Different Types of Remedies for Breach of Contract

Specific Performance

Specific performance can be described as a kind that remedies a breach where the court requires the party who has breached to fulfil their obligations under the contract.

In general, monetary damages are preferred over specific performance in the event of breaches of contract. But, specific performance could be available if the amount of damages you receive isn’t enough to compensate you. They could, for instance, be a part of a contract that covers something unique that isn’t easily replaceable.


The equitable remedies that include specific damages for performance or injunction for claims arising from loss of contract do not exist; however, they are accessible. The innocent parties can claim damages from the company that has violated the contract. You could receive the amount you want or a significant amount of compensation. Insignificant damages can be awarded when the innocent party hasn’t suffered any loss due to the breach of another party’s.

Consequential damages are awarded as financial compensation for losses due to the breach by one of the parties. To be eligible for substantial damages, the innocent party must show that he has suffered loss because of the breach and the magnitude of the losses. The party in breach may claim that an innocent person did not do enough to reduce his losses.

Contract Termination

A breach of the material terms can result in the termination of a contract, whether by an express provision in the contract or through a court or court. It is crucial to exercise the time to seek out legal counsel before deciding to exercise their right to terminate the contract as the opposing party might contest their breach and may claim that there’s an exaggerated justification for the breach, a restriction on their liability, or an unresolved time frame to correct the breach.

When terminating activities, there could be additional obligations to meet. The other party must ensure they can fulfil those obligations to avoid embarrassment or potential backlash. Also, it must prove that the breach is proved and can’t be rectified.


Injunctions are used for the same reason, similar to specific performance. In contrast, when a court can specify a performance, it requires the party to perform something. Injunctions are when the court orders a person not to take action. Injunctions can be temporary or permanent.

Temporary injunctions are usually issued to avoid potential harm when litigation is in progress. For instance, in a case involving a non-competing contract breach, the judge could order the defendant to cease any supposed competition until the case is settled. Permanent injunctions, like the title suggests, are indefinite. A judge could issue a permanent order as one final decision in a court case.



Rescission permits a party not breaking the contract to end the contract as an alternative to remedying the breach. Instead of seeking damages in the form of money or monetary compensation, the party who broke the contract may decide not to fulfil their obligation. The revocation places the parties in the same position they would be in if they had not signed the contract.

To justify the rescission, the violation must be significant. It has to be a breach of the core of the contract. For example, suppose you sign a contract to cater for an occasion. The contract calls for another party to make payment of a portion of the contract’s price at a specified date. However, they do not pay. Since the payment requirement is at the core of the agreement, you could be justified in revoking the contract and not providing catering services.

Liquidated Damages

Liquidated damages refer to a particular amount agreed to by the parties in the contract as compensation for the breach. Contracts usually have liquidated damages clauses which can make it difficult to determine the proper value of the compensatory damage.

Purchase agreements for real estate and construction contracts typically are based upon liquidated damages. They could be a certain amount, for instance, the amount of earnest money required in an agreement to purchase. They could also be based on an equation, such as the amount of money per day that a deadline is not fulfilled.

Partnership agreements also tend to include provisions regarding liquidated damages. While courts generally accept liquidated damages clauses, they can revoke them if they find that the value of liquidated damages is significantly less or more than the amount of actual harm that the plaintiff has suffered.

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