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Various types of damages available for breach of contract

On Behalf of | Jul 16, 2015 | Business Litigation |

Miami businesses tend to rely heavily on contracts when performing work. Unfortunately, contracts are not always followed. Sometimes businesses come across financial issues or experience delays, causing upset clients. At times there may even be a breach of contract or alleged breach. While this can be a frustrating situation, it can be remedied with legal action. Read on to learn about the types of damages a customer can receive for unfinished or subpar work.

The most common type of remedy is compensatory damages. As the name implies, this type of remedy compensates the client for any money he or she must pay to get the job done as outlined in the contract. Restitution is a similar damage, but different in that the company must pay back any money it was given by the client. So if a company was paid $1,000 to perform a job but never completed it, the company would typically be forced to pay back the entire amount.

If the contract was breached, but no harm was done, then the court may award nominal damages. This is usually not a huge amount, but each case is different. On the flip side, if the breaching company did something the court finds morally wrong, then the court may punish it with punitive damages. These damages are paid on top of all other damages and are typically a high amount of money with the goal of stopping the company from causing the same harm to future customers.

A contract dispute can sometimes be settled outside of court, but when the parties fail to come to an agreement, business litigation may be the only option. While some issues simply cannot be avoided, timely communication can help companies avoid costly and time-consuming business disputes with customers.

Source: FindLaw, “What is the most common legal remedy for a breach of contract?” accessed July 10, 2015