Contracts govern most business relationships in Florida. They dictate the terms and conditions of an agreement between two parties.
Typically, business owners work with lawyers to ensure their contracts are well-drafted and plan for potential conflicts.
However, even the most well-written agreements can lead to disputes. A breach of a contract occurs when one party fails to uphold or fulfill their obligations without a legal excuse.
Breaches of a contract can leave one party at a severe disadvantage; it can lead to lost profits, upset customers, and even cause the business to close.
If a party has breached an agreement with you, several legal remedies for breach of contract may be available. Below, we will discuss six common remedies for breach of contract. A Orlando breach of contract attorney can help you navigate the available remedies and determine which best suits your situation.
Damages
In many cases, a contract breach results in one party losing money. Damages are monetary compensation for the violation of a contract. They are usually the easiest and most common way of making the aggrieved party whole.
There are a few different types of available damages for breach of contract, including:
- General or compensatory damages. These damages intend to put the non-breaching party in the same place it would have been if the breach had never occurred. The value of the damages is based on the value of the non-breaching party’s business losses due to the breach.
- Special or consequential damages. Special damages may be available if the injured party suffers an indirect loss from the breach of contract, such as lost profits, added operation costs, or reputational damage. To receive these damages, a plaintiff must demonstrate that the loss was reasonably foreseeable when forming the contract.
- Liquidated damages. These damages are typically agreed upon and included in the contract as an estimated, predetermined sum that one party (in breach) agrees to pay the other party (injured party) as compensation for a violation instead of the injured party suing for the damages incurred. The amount of liquidated damages must be proportional to the financial losses incurred.
- Punitive damages. These damages punish a breaching party’s misconduct if it is egregious or based on fraud. They also are to deter others from committing the same heinous acts in the future.
No two cases receive the same type or amount of damages for breach of contract. If you believe you have experienced a breach of contract, speak with a contract attorney to determine what kind of damages you may pursue.
Specific Performance
Sometimes, a court may require a breaching party to perform their obligations under the contract they previously failed to perform. This is a way of making the injured party whole when monetary compensation is insufficient.
Courts often use specific performance when the contractual obligation involves a particular good or service that is difficult to replace or get from another vendor.
For example, if the injured party ordered a good that no other vendor can deliver, the breaching party may be ordered to deliver the product.
Rescission
Rescission is a legal remedy a non-breaching party can seek to cancel or undo the contract. When parties cancel the contract, they return to their positions before the contract’s existence and relieve them of their contractual obligations. It may also require returning any consideration (money or property) that was exchanged.
The parties can agree to rescission of the agreement, or it can be unilateral by one party if the other party causes a material breach of contract.
A court may order rescission of the contract when one party invalidates the contract by engaging in fraudulent or misleading conduct, mistake, duress, undue influence, or misrepresentation. Rescission may also be an appropriate remedy for an unconscionable contract or not in the public interest.
Reformation
As we noted, mistakes do happen despite best efforts to prevent them. The reformation of a contract is another remedy that allows the parties to fix or alter a mistake or error in the contract to reflect the parties’ true intentions.
Parties use reformation when a dispute arises from mutual mistakes or differing interpretations of key contractual terms or provisions.
Restitution
Restitution works as a type of refund. Where compensatory damages are based on the injured party’s loss, restitution is based on the breaching party’s gain. When a breaching party gains a good, service, or monetary amount they are not entitled to, a court may order them to return it to the injured party.
It takes away profits from the breaching party. This remedy is most often associated with cases of unjust enrichment where one person has received a benefit at the expense of another without legal reasoning or any agreement to compensate the other party.
Injunctive Relief
Injunctive relief is when a court orders a party to stop doing something to prevent further harm or damage to the non-breaching party. This can be an appropriate remedy when monetary compensation alone cannot remedy the breach.
Injunctive relief may include:
- Preliminary or temporary injunction. These injunctions are sought early in the case and aim to maintain the then-existing status quo while the parties attempt to resolve the case or while the case is pending further legal action in the courts.
- Permanent injunction. Once the non-breaching party proves their case in litigation and the court issues its final judgment, the injunction can be permanent and made a part of the final decision. A permanent injunction remains in effect until it is modified or removed by a subsequent court order.
Courts may order Injunctive relief where the non-breaching party can show a strong likelihood of success in proving their case and that the breaching party’s actions will result in irreparable harm without an injunction.
Additionally, the court can consider whether the injunction would cause more harm than good to the parties and the public interest.
Hire BrewerLong to Seek Relief for Breach of Contract
You may be entitled to compensation or other equitable relief if you experienced damages because of a breach of contract in Florida. BrewerLong can help you get the justice and compensation you deserve.
Our attorneys have decades of experience assisting clients with breach of contract claims. They understand the nuances of contract law and how to successfully pursue legal remedies for breach of contract. A contract attorney will review the facts of your case and discuss the available options.
As a small business law firm, we offer each client individualized, one-on-one attention and can respond quickly to your questions. We take the time to understand your situation and ensure our strategies align with your goals.
Our contract attorneys will fight to protect your rights. We also have several attorneys who, since 2012, have received the Martindale Hubbell AV Rating, the highest rating assessing a lawyer’s legal ability and ethical standards.
Contact BrewerLong today to learn how our attorneys can help you with your breach of contract claim.
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