Common legal remedies for contract disputes

Being involved in a contract dispute can be overwhelming, stressful and a lengthy process. Contract disputes are all too common and occur in just about every industry. There are various reasons for a contract dispute to occur, including failing to deliver on agreed upon items, missing deadlines and more. Here are some legal remedies used when faced with contract disputes.

One of the most common legal remedies used in a contract dispute is that of restitution. Restitution is ordered by a court after a case is heard between the plaintiff and the defendant (violator of the contract). The court will order the person who breached the terms of the contract to repay the plaintiff a specific amount of money.

Compensatory damages are also used as a legal remedy for contract disputes. Compensatory damages are ordered by the court and force the defendant to pay the plaintiff a set amount of money that allows them to acquire services elsewhere that the defendant originally promised.

Punitive damages are also awarded by the court to the plaintiff in the case. These damages are done to hurt the defendant in the case for doing something on purpose. For example, the defendant could have breached the contract on purpose by providing poor quality workmanship knowingly.

Nominal damages are awarded by the court when there has been a breach of a contract, but neither party involved has suffered harm from the breach.

A court can also cancel a contract that has been breached in what is called remedies in equity. The court will rule that both parties are no longer bound by the contract.

If you are dealing with a contract dispute in New York, an experienced business law attorney can help you learn more about your situation. This is an important issue that should not be dealt with alone.

Source: Findlaw, "What Is the Most Common Legal Remedy for a Breach of Contract?," accessed Oct. 13, 2017

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