Breach of Contract: 3 Remedies

BREACH OF CONTRACT: 3 REMEDIES

Throughout our lifetime we are involved in many different contracts. Unfortunately for some the terms and conditions are not always honoured. A breach of contract occurs when one party violates a term in a legally binding agreement. If you are currently experiencing this, our team of experienced lawyers can represent you to help secure a remedy for any loss suffered. Keep on reading to learn more about what remedy could be available for you.

Damages

Damages are the most common remedy sought in courts. The amount that is awarded will be calculated based on what is needed to put the suffering party in the position they would have been in had the contract been properly preformed. This can include loss of profit, interest and additional expenses incurred as a result of the breach. If the breach is severe enough, the party in breach may be ordered to pay additional damages that is more than the loss itself. It is the responsibility of the party making the claim to prove that the losses occurred due to the contract breach. It is important to be aware of the fact that the party making the claim has a duty to mitigate damages. For example, a terminated employee has an obligation to make attempts to find a new job. They cannot simply remain unemployed without any efforts to find work and then claim damages for that entire period off work.

Injunctive Relief

Injunctive relief is a remedy that can be used to stop a continuing breach of contract. This means that an injunction can order a party to stop doing a certain action if it is in breach of the contract. Some cases call for an interlocutory injunction which can be temporarily used to order a party to refrain from an action until the case has been decided. If the party in breach fails to cease its actions and disregards the injunction, then the party can be found to be in contempt of court and could be subject to fines and even potential imprisonment.

Specific Performance

Specific performance is a remedy for when damages would not properly compensate the party claiming a breach of contract. This remedy allows the court to order the obligations of the contract to be fulfilled by the party in breach. As with the remedy of damages there is a duty to mitigate losses under this remedy. Judges will also take into account whether specific performance would cause the party in breach undue hardship which could impact whether specific performance is granted or not.

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