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4 types of damages to possibly pursue after a breach of contract

On Behalf of | Aug 6, 2021 | Business Law Litigation

Florida business owners who need to work with outside parties or employees typically choose to create appropriate contracts for a given situation. You may have given much thought to the terms of each contract you created and felt secure that they would provide you and your company with the protection needed to lessen the likelihood of your business suffering losses or other harm.

Unfortunately, even though your contracts had the right terms, another party involved in the agreement did not abide by those terms. As a result, your company suffered losses, which may be significant, depending on the exact circumstances. Because the other party committed a breach of contract, you may have reason to pursue damages.

What type of damages are fitting?

Because breach of contract cases differ, the types of damages that may suit each case also differ. As a result, one or more of the following types may fit your ordeal:

  • Nominal damages: As the name suggests, nominal damages have no great significance in amount or outcome. However, they could prove useful to your company in the event that no money loss occurred. but some type of restitution is still applicable.
  • Compensatory damages: This type of restitution often refers to the breaching party having to compensate the non-breaching party for the actual number of losses that occurred.
  • Punitive damages: These damages go beyond compensatory damages and may apply if the breaching party committed egregious acts as part of the breach. However, punitive damages rarely apply to breach of contract cases.
  • Liquidated damages: This type refers to estimated damages specified in the contract that would go into effect in the event of a breach.

Even with signed agreements that specify the consequences of breaching the terms, you may have difficulty receiving the damages to which you have a right. As a result, it may be necessary to consider your legal options.

Pursuing a lawsuit

Though it may seem time-consuming and difficult, filing a lawsuit against the breaching party may be necessary. This action could also better ensure that you and your company receive the full compensation to cover the losses and other harm you incurred as a result of the breach. Fully exploring your legal options and the specific details of your case may help you determine whether moving forward with litigation could help you and your business mitigate the harm of the situation.

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